The real estate escrow person (REEP) is required to notify buyers of withholding requirements, unless the buyer is a QI in a deferred exchange. • Prepayment of California state income tax for sellers on the taxable gain of California real property.In most real estate transactions, the escrow holder transmits the tax to the Franchise Tax Board. What unit at the Franchise Tax Board handles the withholding? This publication provides guidance on the tax withholding requirements for sales of California real property. However, most sellers qualify for an exemption, meaning that usually no California withholding is required. I am in escrow, selling a CA rental condo, and I do not know how to complete Form 593. The escrow company will provide this form to the seller, typically when the escrow instructions have been prepared and sent out for signatures. Learn all the details of the escrow process when selling a home in California. Understand all the steps, as well as tips to ensure a successful closing.
