Fillable Printable 2013 Form 593 - Real Estate Withholding Tax Statement
Fillable Printable 2013 Form 593 - Real Estate Withholding Tax Statement
2013 Form 593 - Real Estate Withholding Tax Statement
-
-
Real Estate Withholding Tax Statement
Part III Perjury Statement – Signature is required when the Optional Gain on Sale is elected above.
Title and escrow persons, and exchange accommodators are not authorized to provide legal or accounting advice for purposes of determining withholding
amounts. Transferors are strongly encouraged to consult with a competent tax professional for this purpose.
Under penalties of perjury, I hereby certify that the information provided above is, to the best of my knowledge, true and correct. I understand that the Franchise Tax Board may review relevant
escrow documents to ensure withholding compliance. I understand that if this form is not signed, the withholding amount will be 3 1/3% (.0333) of the total sales price or first installment payment.
Your signature Spouse’s/RDP’s signature
X ___________________________________________ X ____________________________________ Date _____________________
Seller’s email address (optional)
______________________________________________________________________________________________________________
Preparer’s name and Title/Escrow business name Telephone Number
CALIFORNIA FORM
593
Part II Escrow or Exchange Information
1. Escrow or Exchange Number ........................................... I 1
2. Date of Transfer, Exchange Completion, Failed Exchange, or Installment Payment...................................I 2
3. Type of Transaction (Check One Only): I
A m Conventional Sale or Transfer B m Installment Sale Payment C m Boot D m Failed Exchange
4. Withholding Calculation (Check One Only): I
Total Sales Price Method
A m 3 1/3 % (.0333) x Total Sales Price (See instructions. Signature not required below)
Optional Gain on Sale Election (Signature required below)
B m Individual 12.3% x Gain on Sale E m Bank and Financial Corp. 10.84% x Gain on Sale
C m Non-California Partnership 12.3% x Gain on Sale F m S Corporation 13.8% x Gain on Sale
D m Corporation 8.84% x Gain on Sale G m Financial S Corporation 15.8% x Gain on Sale
5. Amount Withheld from this Seller .................................................. 5
Mail completed Form 593 and payment, along with Form 593-V,
Payment Voucher for Real Estate Withholding, to:
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-0651
If paying by EFT mail Form 593 to:
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-8888
TAXABLE YEAR
2013
Business name
SSN or ITIN FEIN CA Corp no. CA SOS file no.
First name
Initial
Last name
Address (suite, room, PO Box, or PMB no.)
City State ZIP Code
First name
Initial
Last name SSN or ITIN
Spouse’s/RDP’s first name
Initial
Last name Spouse’s/RDP’s SSN or ITIN
Business name (if applicable)
FEIN CA Corp no. CA SOS file no.
Address (apt./suite, room, PO Box, or PMB no.)
City State ZIP Code
Property address (if no street address, provide parcel number and county)
Part I Withholding Agent
Seller or Transferor
( )
M M D D Y Y
- -
- -
AMENDED: I
It is unlawful to forge
a spouse’s/RDP’s
signature.
Form 593 C2 2012
For Privacy Notice, get form FTB 1131.
.
,
,
7111133
Form 593 2012 Page 1
What’s New
For taxable years beginning on or after
January 1, 2012, the maximum personal
income tax rate is 12.3%. In addition,
non-California partnerships are subject to
withholding requirements on a sale of California
real property at a rate of 3 1/3% (.0333) of
sales price or 12.3% of gain. The alternative
withholding rate for the gain on sale of
California real property by S corporations is
13.8% and 15.8% for Financial S corporations.
Do Not Round Cents to Dollars – On this form,
do not round cents to the nearest whole dollar.
Enter the amounts with dollars and cents as
actually withheld.
General Information
Withhold on Installment Sale Elect-out
Method – If the seller elects not to report
the sale on the installment method (Internal
Revenue Code Section 453[d]), the seller
must file a California tax return and report
the entire sale on Schedule D-1, Sale of
Business Property. After filing the tax return
and reporting the entire gain, the seller must
submit a written request to the Franchise
Tax Board (FTB) to release the buyer from
withholding on the installment sale payments.
Once the request is received, FTB will issue an
approval or denial within 30 days.
Installment Sales – For installment sales
occurring on or after January 1, 2009, buyers
are required to withhold on the principal
portion of each installment payment if the sale
of California real property is structured as an
installment sale.
Registered Domestic Partners (RDP) – For
purposes of California income tax, references
to a spouse, husband, or wife also refer to a
California RDP, unless otherwise specified.
When we use the initials RDP they refer to both
a California registered domestic “partner” and
a California registered domestic “partnership,”
as applicable. For more information on
RDPs, get FTB Pub. 737, Tax Information for
Registered Domestic Partners.
Electronic Filing Requirements –
Form 593,
Real Estate Withholding Tax Statement,
information may be filed with the FTB
electronically, using FTB’s Secure Web Internet
File Transfer (SWIFT), instead of paper.
However, withholding agents must continue
to provide the seller or transferor with paper
Form 593.
For electronic filing, submit your file using the
SWIFT process as outlined in FTB Pub. 923,
Secure Web Internet File Transfer (SWIFT)
Guide for Resident, Nonresident, and Real
Estate Withholding.
For the required file format and record layout
for electronic filing, get FTB Pub. 1023R, Real
Estate Withholding Electronic Submission
Requirements. If you are the preparer for more
than one withholding agent, provide a separate
electronic file for each withholding agent. For
electronic filing submit your payment using
Electronic Funds Transfer (EFT) or Form 593-V,
Payment Voucher for Real Estate Withholding.
When remitting payments by EFT, mail a copy
of Form 593 to the following address:
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-8888
A Purpose
Use Form 593 to report real estate withholding
on sales closing in 2013, on installment
payments made in 2013, or on exchanges that
were completed or failed in 2013.
Use a separate Form 593 to report the amount
withheld from each seller. If the sellers are
married or RDPs and they plan to file a joint
return, include both spouses/RDPs on the same
Form 593.
If the sellers are married or RDPs and they are
entered as one seller, we treat them as having
equal ownership interest. If the ownership
interest is not equal, separate Forms 593 need
to be filed for each individual to represent the
correct interest percentage. If the information
submitted is incorrect, an amended Form 593
must be submitted to the FTB by the
withholding agent.
Use Form 593-V to remit your real estate
withholding payment to the FTB when
Form(s) 593 is submitted electronically or by
mail. You must use Form 593-V when remitting
a payment by check or money order. You
may also have your payments automatically
withdrawn from your bank account via EFT.
Common Errors
Year of Form – The year (at the top) of
Form 593 must be the same as the year on
line 2. See instructions for line 2. If you do not
have Form 593 with the correct year, go to
ftb.ca.gov to get the correct form.
Identification Numbers – Check to see that the
withholding agent’s and seller’s identification
numbers are correct and listed in the same
order as the names. If both a husband/RDP
and wife/RDP are listed, make sure both social
security numbers (SSNs) or individual taxpayer
identification numbers (ITINs) are listed in the
same order as their names.
Trusts and Trustees – It is important to report
the correct name and identification number
when title is held in the name of a trust. If
the seller is a trust, see the Specific Line
Instructions on page 2 for Seller or Transferor.
Preparer’s Name and Title/Escrow Business
Name – Provide the preparer’s name and
title/escrow’s business name and phone
number.
B Who Must File
Any person who withheld on the sale or
transfer of California real property during the
calendar month must file Form 593 to report,
and Form 593-V to remit the amount withheld.
Normally, this will be the title company, escrow
company, intermediary, or accommodator.
Generally, the buyer will only complete these
forms when reporting the withholding on
installment payments.
C When and Where to File
You need three completed copies of Form 593
for filing and distribution. With the principal
portion of the first installment payment, file a
copy of Form 593, Form 593-I, and Form 593-V,
including a copy of the promissory note, and
pay the amount of tax withheld within 20 days
following the end of the month in which the
transaction occurred. Mail to:
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-0651
Distribute the other two copies of Form 593
as follows:
• Send one copy to sellers within 20 days
following the end of the month in which the
transaction occurred.
•
One copy will be retained by the withholding
agent for a minimum of five years and must
be provided to the FTB upon request.
D Interest and Penalties
Interest will be assessed on late withholding
payments and is computed from the due
date to the date paid. If the real estate
escrow person does not notify the buyer of
the withholding requirements in writing, the
penalty is the greater of $500 or 10% of the
required withholding.
If the buyer (after notification) or other
withholding agent does not withhold, the
penalty is the greater of $500 or 10% of the
required withholding.
If the withholding agent does not furnish
complete and correct copies of Form 593 to
the FTB by the due date, but does file them
within 30 days of the due date, the penalty is
$15 per Form 593. If Form 593 is filed more
than 30 days but less than 180 days after the
due date, the penalty is $30 per Form 593. If
Form 593 is filed more than 180 days after the
due date, the penalty is $50 per Form 593. If
the failure is due to an intentional disregard of
the requirement, the penalty is the greater of
$100 or 10% of the required withholding.
If the withholding agent does not furnish
complete and correct copies of Form 593 to the
seller by the due date, the penalty is $50 per
Form 593. If the failure is due to an intentional
disregard of the requirement, the penalty is
the greater of $100 or 10% of the required
withholding.
Instructions for Form 593
Real Estate Withholding Tax Statement
Page 2 Form 593 2012
Specific Instructions
Foreign Address - Enter the information in
the following order: City, Country, Province/
Region, and Postal Code. Follow the country’s
practice for entering the postal code. Do not
abbreviate the country’s name.
Part I – Withholding Agent
Enter the business or individual withholding
agent’s name, mailing address, and
identification number of the withholding
agent (payer/sender). Enter the SSN or ITIN
only when the buyer, who is an individual, is
sending the withholding payment. Include
the Private Mail Box (PMB) in the address
field. Write “PMB” first, then the box number.
Example: 111 Main Street PMB 123.
Seller or Transferor
Enter the individual or business name (if
applicable), mailing address, and identification
number of the seller or transferor. Include the
PMB in the address field. Write “PMB” first,
then the box number. Example: 111 Main
Street PMB 123. If the seller has applied for
an identification number, but it has not been
received, enter, “Applied For” in the space for
the seller’s ID and attach a copy of the federal
application behind Form 593.
If the seller is an individual, enter the SSN
or ITIN. If the sellers are husband/RDP and
wife/RDP and plan to file a joint return, enter the
name and SSN or ITIN for each spouse/RDP.
Otherwise, do not enter information for more
than one seller. Instead, complete a separate
Form 593 for each seller.
If the seller is a business, enter the business
name in the business name field along with
the federal employer identification number
(FEIN), California Corp number, or California
Secretary of State (SOS) file number. If the
seller is a grantor trust, enter the grantor’s
individual name and SSN or ITIN. Do not enter
the name of the grantor trust. The grantor
trust is disregarded for tax purposes and the
individual seller must report the sale and claim
the withholding on the individual’s tax return.
If the seller is a non-grantor trust, enter the
name of the trust and the trust’s FEIN. If the
trust has not applied for a FEIN, leave the
identification number blank. Do not enter the
trustee information. When you receive your
FEIN, contact the FTB at 888.792.4900.
If the seller is a single member disregarded
limited liability company, enter the name and
identification number of the single member.
For all other non-individual sellers, enter the
FEIN, CA Corp number, or CA SOS file number.
Enter the address (or parcel number and
county) of the California real property
transferred.
Conventional Sale or Transfer and Installment
Sales: Enter the address (parcel number and
county) of the transferred property.
Exchanges: Enter the address of the
relinquished property.
Part II – Escrow or Exchange
Information
Line 1 – Escrow or Exchange Number
Enter the escrow or exchange number for the
property transferred.
Line 2 – Date of Transfer, Exchange
Completion, Failed Exchange, or Installment
Payment
Conventional Sale or Transfer: Enter the date
escrow closed.
Installment Sales: For withholding on the first
installment payment, enter the date escrow
closed. For withholding on the principal portion
of each installment payment, enter the date of
the installment payment.
Exchanges: For completed exchanges, enter
the date that the boot (cash or cash equivalent)
was distributed to the exchanger. For failed
exchanges, enter the date when it was
determined that the exchange would not meet
the deferred exchange requirements and any
cash was distributed to the seller.
When withholding on boot or a failed
exchange, be sure to use the forms for the year
that you entered on line 2 (rather than the year
of the sale), since the seller will be able to use
installment sale reporting for the gain.
Line 3 – Type of Transaction
Check one box that represents the type of real
estate transaction for which the withholding is
being calculated.
Conventional Sale or Transfer: Check this box
if the conventional sale or transfer represents
the close of escrow for the real estate
transaction. This sale or transfer does not
contain any conditions such as an installment
sale, boot, or failed exchange.
Installment Sale Payment: Check this box
if you are withholding on either the principal
portion of the first installment payment
during escrow or on the principal portion of
a subsequent installment payment including
the final payoff in escrow. Attach a copy of
the promissory note with the first installment
payment.
Note: The withholding agent is required to
check box B for Installment Sale Payment in
line 3 if the transaction is structured as an
installment sale, as evidenced by a promissory
note.
Boot: Check this box if the seller intends to
complete a deferred exchange, but receives
boot (cash or cash equivalent) out of escrow.
Failed Exchange: Check this box for any
failed exchange, including if a failed deferred
exchange had boot withheld upon in the
original relinquished property.
E Amending Form 593
To amend Form 593:
•
Complete a new Form 593 with the correct
information.
•
Check the “Amended” box at the top of the
form.
•
Include a letter explaining what changes
were made and why.
•
Mail the amended form and letter to:
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-0651
Whenever an amended Form 593 is provided
to the FTB, each affected seller should also
be provided with a copy. Be sure to check the
“Amended” box at the top of the revised form.
Amended forms can only be filed by the
withholding agent. If a seller notices an error,
the seller should contact the withholding agent.
Do not file an amended Form 593 to cancel
the withholding amount for a Form 593-C,
Real Estate Withholding Certificate, filed after
the close of escrow. After escrow has closed,
amounts withheld may be recovered only by
claiming the withholding as a credit on the
appropriate year’s tax return. Get Form 593-C
for more information.
Instructions for Seller
This withholding of tax does not relieve you
from the requirement to file a California income
tax return and report the sale within three
months and fifteen days (two months and
fifteen days for a corporation) after the close of
your taxable year.
You may be assessed penalties if:
•
You do not file a tax return.
• You file your tax return late.
• The amount of withholding does not satisfy
your tax liability.
How to Claim the Withholding
To claim the withholding credit, report the sale
or transfer as required and enter the amount
from line 5 on the withholding line on your tax
return, Withholding (Form 592-B and/or 593).
Attach one copy of Form(s) 593, to the lower
front of your California tax return. Make a copy
for your records.
If withholding was done for a failed exchange
or on boot in the year following the year the
property was sold, the withholding is shown
as a credit for the taxable year the withholding
occurred since you qualify for installment sale
reporting. If you elect to report the gain in the
year the property was sold, instead of in the
year you received the payment, contact the FTB
at 888.792.4900 prior to filing your California
tax return for instructions to have the credit
transferred to the prior year.
Form 593 2012 Page 3
Line 4 – Withholding Calculation
Check one box that represents the method to
be used to calculate the withholding amount
on line 5. Either the Total Sales Price Method
(3
1
/
3
% (.0333) of the sale price) or the Optional
Gain on Sale Election based on the applicable
tax rate as applied to the gain on sale. Check
only one box, A-G.
Line 5 – Amount Withheld
Enter the amount withheld from this
transaction or installment payment based
upon the appropriate calculation for either the
Total Sales Price or the Optional Gain on Sale
Election, below.
Withholding Amount Using Total
Sales Price Method
Conventional Sale or Transfer:
a. Total Sales Price..........$__________
b. Enter the seller’s
ownership percentage
...... _ _ _ ._ _%
c. Amount Subject to Withholding.
Multiply line a by line b and
enter the result
..........$__________
d. Withholding Amount. Multiply
line c by 3
1
/
3
% (.0333) and
enter the result here and on
Form 593, line 5
..........$__________
Installment Sales:
a. Amount Subject to Withholding.
If you are withholding on the first
installment payment in escrow,
enter the required amount of the
first installment payment. If you
are withholding on subsequent
installment payments or the
final payoff in escrow, enter
the principal portion of the
payment
................$__________
b. Withholding Amount. Multiply
line a by 3
1
/
3
% (.0333) and
enter the result here and on
Form 593, line 5
..........$__________
Exchanges:
a. Amount Subject to Withholding.
For completed deferred
exchanges, enter the amount
of boot (cash or cash
equivalent) received by
the seller
................$__________
b. Withholding Amount. Multiply
line a by 3
1
/
3
% (.0333) and
enter the result here and on
Form 593, line 5
..........$__________
Failed Exchanges:
a. Total Sales Price. If a deferred
exchange is not completed or
does not meet the deferred
requirements, enter the total
sales price
..............$__________
b. Ownership Percentage. If
multiple transferors attempted
to exchange this property,
enter this seller’s ownership
percentage. Otherwise,
enter 100.00%
............ _ _ _ ._ _%
c. Amount Subject to
Withholding. Multiply
line a by line b
...........$__________
d. Withholding Amount. Multiply
line c by 3
1
/
3
% (.0333) and
enter the result here and
on Form 593, line 5
.......$__________
Withholding Amount Using
Optional Gain on Sale Election
Conventional Sale or Transfer: Enter the
amount from Form 593-E, Real Estate
Withholding – Computation of Estimated Gain
or Loss, line 17 on Form 593, line 5.
Installment Sales: The Installment
Withholding Percent is applied to the principal
portion of all installment payments, including
the first installment payment received during
escrow to determine the gain on sale. The
gain on sale is then multiplied by the seller’s
applicable tax rate to determine the withholding
amount.
You must complete the calculation under
Installment Withholding Percent first to
determine the withholding percentage needed
to complete the withholding amount in item c
below.
a. Installment Payment.......$__________
b. Gain on Sale, multiply line a by
the Installment Withholding
Percent (calculated in the
next column)
............$__________
c. Withholding Amount. Multiply
line b by the applicable tax
rate* and enter the result here
and on Form 593, line 5
....$__________
Installment Withholding Percent
Complete this calculation for the Installment
Withholding Percent that will be applied to
all installment payments, including the first
installment payment received during escrow.
If withholding on the principal portion of each
installment payment, the seller must provide
the buyer with the Installment Withholding
Percent to be included on Form 593-
I,
Real Estate Withholding Installment Sale
Acknowledgement. If withholding on the first
installment payment is received during escrow,
then compute the percent as follows:
a. Gain on Sale from
Form 593-E, line 16
.......$__________
b. Selling Price from
Form 593-E, line 1
........$__________
c. Installment Withholding
Percent, divide line a by
line b
................... _ _ _ ._ _%
With the principal portion of the first
installment payment, attach a copy of the
promissory note to the original Form 593 that
will be sent to the FTB.
Exchanges:
a. Boot Amount. Not to
exceed recognized gain
....$__________
b. Withholding Amount. Multiply
line a by the applicable tax
rate* and enter the result
here and on Form 593,
line 5
..................$__________
Failed Exchanges:
a. Gain on Sale from
Form 593-E, line 16
.......$__________
b. Ownership Percentage. If
multiple transferors attempted
to exchange this property,
enter this seller’s ownership
percentage. Otherwise,
enter 100.00%
............ _ _ _ ._ _%
c. Amount Subject to
Withholding. Multiply
line a by line b
...........$__________
d. Withholding Amount. Multiply
line c by the applicable tax
rate* and enter the result here
and on Form 593, line 5
....$__________
If a failed deferred exchange had boot withheld
upon in the original relinquished property,
reduce the withholding amount by the amount
previously remitted to the FTB.
*Tax Rates
Individual 12.3%
Non-California Partnership 12.3%
Corporation 8.84%
Bank and Financial Corporation 10.84%
S Corporation 13.8%
Financial S Corporation 15.8%
Part III – Perjury Statement
Complete the Seller’s and Preparer’s
information. A signature is only required if the
Optional Gain On Sale Election method is used.
Preparer’s Name and Title/Escrow Business
Name
Provide the preparer’s name and title/escrow’s
business name and phone number.
Page 4 Form 593 2012
Additional Information
For additional information or to speak to a
representative regarding this form, call the
Withholding Services and Compliance’s
automated telephone service at:
888.792.4900, or
916.845.4900
FAX 916.845.9512
Or write to:
WITHHOLDING SERVICES AND
COMPLIANCE
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-0651
You can download, view, and print California
tax forms and publications at ftb.ca.gov.
Or to get forms by mail, write to:
TAX FORMS REQUEST UNIT
FRANCHISE TAX BOARD
PO BOX 307
RANCHO CORDOVA CA 95741-0307
For all other questions unrelated to withholding
or to access the TTY/TDD number, see the
information below.
Internet and Telephone Assistance
Website: ftb.ca.gov
Phone: 800.852.5711 from within the
United States
916.845.6500 from outside the
United States
TTY/TDD: 800.822.6268 for persons with
hearing or speech impairments
Asistencia Por Internet y Teléfono
Sitio web: ftb.ca.gov
Teléfono: 800.852.5711 dentro de los
Estados Unidos
916.845.6500 fuera de los Estados
Unidos
TTY/TDD: 800.822.6268 personas con
discapacidades auditivas y del habla
