Get Real Estate Interest Remittance Form

Buyers must withhold 3 1/3 percent of the gross sales price on sales of California real property interests from both individuals (e.g., "natural" persons) and non-individuals (e.g., corporations, trusts, estates) and pay this amount to the Franchise Tax Board (FTB).

The seller/transferor must submit Form 593 before the close of the real estate transaction to prevent withholding on the transaction. After the real estate transaction has closed, amounts withheld may be recovered only by claiming the withholding as a credit on the appropriate year's tax return.

For more information, go to ftb.ca.gov and search for electronic 592-B requirements. A broker can provide Form 592-B as a composite statement. For more information, go to ftb. ca.gov and search for composite 592-B.

Buyers must withhold 3 1/3 percent of the gross sales price on sales of California real property interests from both individuals (e.g., "natural" persons) and non-individuals (e.g., corporations, trusts, estates) and pay this amount to the Franchise Tax Board (FTB).

The employer determines the amount of withholding based upon the employee's information provided through the Form W-4. Factors that make up the calculation for withholding tax include filing status, number of exemptions, and amount of semi-monthly gross earnings.

For the State, the law is written such that all real property being sold requires the payment of tax at the close of escrow in an amount equal to 3.33% of the Sales Price.

During escrow, the remitter would be the REEP as they are the one submitting the payment and Form 593. The remitter is the person who will remit the tax withheld on any disposition from the sale or exchange of CA real estate and file the prescribed forms on the buyer's/transferee's behalf.

CALIFORNIA. Withholding: 3.33% of the sales price if the property is over $100,000. Exemption: Submit Form 593-C and certify as part of a 1031 exchange. Non-resident sellers seeking an exemption must submit Form 593-W to the California Franchise Tax Board.