Real Estate Withholding Return for 2026

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  1. Click ‘Get Form’ to open the Real Estate Withholding Return in the editor.
  2. Begin by entering the seller's name and Social Security Number in Section 1. If married and filing jointly, include the spouse's details as well.
  3. In Section 2, provide the current mailing address of the seller. Ensure accuracy to avoid any delays.
  4. Section 3 requires you to detail the physical location of the property being transferred. Include street address or map details if necessary.
  5. For Section 6, enter the total consideration (sales price) of the property. This includes all financial aspects related to the sale.
  6. In Section 9, calculate and enter the amount withheld for this seller based on their ownership percentage and applicable withholding rate.
  7. Finally, ensure all signatures are completed in Section 10 through 12 before submitting your form.

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Real estate withholding is a prepayment of income (or franchise) tax due from sellers on the gain from the sale of California real property. It is not an additional tax on the sale of real estate.
Although the tax charged comes from the sales price, the responsibility to withhold is on the buyer. If the buyer fails to comply with the FIRPTA withholding requirements, then they may be held liable for the tax owedin addition to penalties and interest.
Form 593, also known as the Real Estate Withholding Certificate, is a document used in California real estate transactions. It serves as a mechanism for the collections of state income tax on the gain from the sale or transfer of real property.
FIRPTA was enacted in 1980 to ensure that foreign investors pay taxes on gains from the sale of U.S. real property. Under FIRPTA, the buyer of the property must withhold up to 15% of the sales price and remit it to the IRS.
FIRPTA withholding requires buyers to retain and remit to the IRS a percentage (generally 15%) of the purchase price when acquiring US real property from foreign sellers. This ensures proper tax collection on gains from these sales and applies to most real estate transactions with foreign sellers.

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Under FIRPTA, a foreign seller of U.S. real property is subject to a tax withholding at closing, and the buyer in such transaction is obligated to submit the tax withholding to the IRS.
Another way to bypass the FIRPTA withholding is by obtaining a Withholding Certificate from the IRS. Heres what you need to know: A FIRPTA withholding certificate is a document from the IRS that can lower or remove the required tax withholding when a foreign person sells U.S. real estate.

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