California Form 593-C - Real Estate Withholding Certificate - 2014 Page 3
Download a blank fillable California Form 593-C - Real Estate Withholding Certificate - 2014 in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete California Form 593-C - Real Estate Withholding Certificate - 2014 with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2
3Line 4 – Involuntary Conversion
Line 8 – Tax-Exempt Entity
The property is being involuntarily or compulsorily converted when both of
Withholding is not required if the seller or transferor is tax-exempt under
the following apply:
either California or federal law (e .g ., religious, charitable, educational, not
for profit organizations, etc .) .
• The California real property is transferred because it was (or threatened
to be) seized, destroyed, or condemned within the meaning of IRC
Line 9 – Insurance Company, Individual Retirement Account, Qualified
Section 1033 .
Pension or Profit-Sharing Plan, or Charitable Remainder Trust
• The seller or transferor intends to acquire property that is similar or
Withholding is not required when the seller or transferor is an insurance
related in service or use in order to be eligible for nonrecognition of gain
company, individual retirement account, qualified pension or profit-sharing
for California income tax purposes .
plan, or a charitable remainder trust .
Get federal Publication 544, Sales and Other Dispositions of Assets, for
Part III – Certifications That May Partially or
more information about involuntary conversions .
Fully Exempt the Sale From Withholding
Line 5 – Non-recognition Under IRC Section 351 or 721
The transfer must qualify for nonrecognition treatment under IRC Section
Complete Part III only if you did not meet any of the exemptions in Part II .
351 (transferring to a corporation controlled by transferor) or IRC Section
Line 10 – Simultaneous Exchange
721 (contributing to a partnership in exchange for a partnership interest) .
If the California real property is part of a simultaneous like-kind exchange
Line 6 – Corporation
within the meaning of IRC Section 1031, the transfer is exempt from
A corporation has a permanent place of business in this state when it
withholding . However, if the seller or transferor receives money or other
is organized and existing under the laws of this state or it has qualified
property (in addition to property that is a part of the like-kind exchange)
through the Secretary of State (SOS) to transact intrastate business .
exceeding $1,500 from the sale, the withholding agent must withhold .
A corporation not qualified to transact intrastate business (such as a
Line 11 – Deferred Exchange
corporation engaged exclusively in interstate commerce) will be considered
If the California real property is part of a deferred like-kind exchange within
as having a permanent place of business in this state only if it maintains
the meaning of IRC Section 1031, the sale is exempt from withholding at
an office in this state that is permanently staffed by its employees after the
the time of the initial transfer . However, if the seller or transferor receives
sale .
money or other property (in addition to property that is a part of the like-
S corporations must withhold on nonresident S corporation shareholders .
kind exchange) exceeding $1,500 from the sale, the withholding agent must
Get FTB Pub . 1017, Resident and Nonresident Withholding Guidelines, for
withhold .
more information .
The intermediary or accommodator must withhold on all cash or cash
Line 7 – Partnership or Limited Liability Company (LLC)
equivalent (boot) it distributes to the seller or transferor if the amount
Partnerships and LLCs are required to withhold on nonresident partners and
exceeds $1,500 .
members . For more information, get FTB Pub .1017 .
If the exchange does not take place or if the exchange does not qualify
Withholding is not required if the title to the property transferred is recorded
for nonrecognition treatment, the intermediary or accommodator must
in the name of a California partnership or it is qualified to do business in
withhold 3
/
% ( .0333) of the total sales price .
1
3
California .
Line 12 – Installment Sale
Withholding is not required if the title to the property transferred is in the
The withholding agent is required to report as an installment sale if
name of an LLC, and the LLC meets both of the following:
the transaction is structured as an installment sale as evidenced by a
promissory note . The withholding agent is required to withhold 3
/
%
1
• It is classified as a partnership for federal and California income tax
3
( .0333) of the first installment payment .
purposes .
• It is not a SMLLC that is disregarded for federal and California income
The buyer is required to withhold on the principal portion of each
tax purposes .
subsequent installment payment if the sale is structured as an installment
sale .
If the LLC meets these conditions, the LLC must still withhold on
nonresident members . Get FTB Pub . 1017 for more information .
When the withholding amount on the first installment principal payment is
sent to the FTB, the FTB must also receive a completed Form 593-
, Real
If the SMLLC is classified as a corporation for federal and California income
I
Estate Withholding Installment Sale Acknowledgement, a completed Form
tax purposes, then the seller or transferor is considered a corporation for
593, Real Estate Withholding Tax Statement, and a copy of the promissory
withholding purposes . Refer to Line 6 .
note .
If the LLC is an SMLLC that is disregarded for federal and California income
tax purposes, then that single member is considered the seller or transferor
Seller or Transferor Signature
and title to the property is considered to be in the name of the single
member for withholding purposes .
You must sign this form and return it to your REEP by the close of escrow
When completing Form 593-C as the single member of a disregarded LLC,
for it to be valid . Otherwise, the withholding agent must withhold the
write on the bottom of the form that the information on the form is for the
full 3
/
% ( .0333) of the total sales price or the optional gain on sale
1
3
single member of the LLC, so the Real Estate Escrow Person (REEP) will
withholding amount from line 5 of Form 593 that is certified by the seller or
understand why it is different from the recorded title holder .
transferor .
Penalty – Any seller or transferor who, for the purpose of avoiding the
If the single member is:
Complete Form 593-C using:
withholding requirements, knowingly executes a false certificate is liable for
a penalty of $1,000 or 20% of the required withholding amount, whichever
An individual
The individual’s information
is greater .
A corporation
The corporation’s information
A partnership
The partnership’s information
An LLC
The single member’s information
Form 593-C/Form 593-E Booklet 2013 Page 5
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial