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Real estate withholding is a prepayment of income tax due from the selling of California land or anything on it (real property). Examples of real property: Vacant land. Buildings.
Give one copy of Form 593 to the seller/transferor by the 20th day of the month following the month of the installment payments. Send each withholding payment, with Form 593-V, and the completed Form 593 to the FTB by the 20th day of the month following the month of the installment payment.
Enter the sale information to report on Form 4797 or Schedule D. Select Real Estate Withholding (Form 593) from the lower-left Sections list. Enter the amount reported on Form 593, box 5 in the Amount withheld from seller field.
You may not have to withhold if: Total payments or distributions are $1,500 or less. Paying for goods. Paying for services performed outside of California.
Purpose. Use Form 593: docHub the seller/transferor qualifies for a full, partial, or no withholding exemption. Estimate the amount of the sellers/transferors loss or zero gain for withholding purposes and to calculate an alternative withholding calculation amount.
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People also ask

Yes, Form 593 must be submitted for every real estate transaction, unless an automatic exemption applies under 18 CCR section 18662-3(d)(1). In an installment sale, during escrow, would the Remitter complete the Buyers information in Part I as the Remitter instead of REEP?
Wage withholding We refer to the amount of wages taken from your paycheck for state and federal income taxes as withholding. The amount of tax withheld is determined by the following. The amount of income subject to tax.
California law requires withholding when a person (an individual, business entity, trust, or estate) sells California real property unless the seller qualifies for an exemption.
It is your obligation to file a California tax return, pay any tax due and claim any real estate withholding payment on your California tax return. The standard withholding is 3.3% of the purchase price of the property, in ance with California Revenue and Taxation Code Section 18662.
Payments subject to withholding include: Payments to nonresident independent contractors or consultants who provide services in California. Other non-wage payments of California source income to nonresidents such as leases, rents, royalties, winnings and payouts.

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