California Real Estate Withholding Tax Statement

Real Estate Withholding Tax Statement
2023 Form 593 Real Estate Withholding Statement
TAXABLE YEAR

2023
AMENDED:

CALIFORNIA FORM

Real Estate Withholding Statement

••

Part I Remitter Information

593
Escrow or Exchange No. _________________________

••

REEP

• Qualified Intermediary

• Buyer/Transferee

• Other________________________________
• FEIN • CA Corp no. • CA SOS file no.

Business name
First name

Initial

Last name

SSN or ITIN

Address (apt./ste., room, PO box, or PMB no.)
City (If you have a foreign address, see instructions.)

Part II Seller/Transferor Information

State

ZIP code

If a grantor or nongrantor trust, check the box that applies.

Telephone number

••

Grantor • Nongrantor Trust

First name/Grantor

Initial

Last name/Grantor

SSN or ITIN

Spouse’s/RDP’s first name (if jointly owned)

Initial

Last name

Spouse’s/RDP’s SSN or ITIN (if jointly owned)

◻ FEIN ◻ CA Corp no. ◻ CA SOS file no.

Business/Nongrantor Trust name (if applicable)
Address (apt./ste., room, PO box, or PMB no.)
City (If you have a foreign address, see instructions.)

State

ZIP code

Property address (provide street address, parcel number, and county)

Telephone number
Ownership percentage

.

%

Part III Certifications which fully exempt the sale from withholding (See instructions)

Determine whether you qualify for a full withholding exemption. Check all boxes that apply to the property being sold or transferred.

1. • The property qualifies as the seller’s (or decedent's, if sold by the decedent's estate or trust) principal residence under Internal Revenue
Code (IRC) Section 121.
2. • The seller (or decedent, if sold by the decedent's estate or trust) last used the property as the seller’s (decedent's) principal residence
under IRC Section 121 without regard to the two-year time period.
3. • The seller has a loss or zero gain for California income tax purposes on this sale. Complete Part VI, Computation on Side 2.
4. • The property is compulsorily or involuntarily converted, and the seller intends to acquire property that will qualify for nonrecognition of
gain under IRC Section 1033.
5. • The transfer qualifies for nonrecognition treatment under IRC Section 351 (property transferred to a corporation controlled by the
transferor) or IRC Section 721 (property contributed to a partnership in exchange for a partnership interest).
6. • The seller is a corporation (or a limited liability company (LLC) classified as a corporation for federal and California income tax purposes)
that is either qualified through the California Secretary of State or has a permanent place of business in California.
7. • The seller is a California partnership or qualified to do business in California (or an LLC that is classified as a partnership for federal and
California income tax purposes that is not a single member LLC that is disregarded for federal and California income tax purposes).
8. • The seller is a tax-exempt entity under California or federal law.
9. • The seller is an insurance company, individual retirement account, qualified pension/profit sharing plan, or charitable remainder trust.
If you checked one or more boxes in line 1 through line 9, withholding is not required. Do not complete Part IV. Go to Side 3, complete the perjury
statement and sign. Provide Sides 1-3 to the remitter before the close of escrow or exchange transaction to submit to the Franchise Tax Board.

Part IV Certifications that may partially or fully exempt the sale from withholding or if no exemptions apply (See instructions)

Determine whether you qualify for a full, partial, or no withholding exemption. Check all boxes that apply to the property being sold or transferred.

10. • The transfer qualifies as either a simultaneous or deferred like-kind exchange under IRC Section 1031. See instructions for
Form 593, Part IV.
11. • The transfer of this property is an installment sale where the buyer must withhold on the principal portion of each installment payment.
Copy of the promissory note is attached at the close of escrow. Complete Part V, Buyer/Transferee Information on Side 2. Withholding may
be required.
12. • No exemptions apply. Check this box if the exemptions in Part III or Part IV, line 10 and line 11, do not apply. Remitter must complete
Part VII, Escrow or Exchange Information, on Side 3 for amounts to withhold. Withholding is required.

8601233

Form 593 2022 Side 1

Escrow or Exchange No.
___________________________
Remitter name

SSN, ITIN, FEIN, CA corp no., or CA SOS file no.

Part V Buyer/Transferee Information

Complete this part if you checked box 11 in Part IV for an installment agreement.
First name/Grantor

Initial Last name/Grantor

SSN or ITIN

Spouse’s/RDP’s first name (if jointly purchased)

Initial Last name

Spouse’s/RDP’s SSN or ITIN
• FEIN

Business/Nongrantor Trust name (if applicable)

• CA Corp no. • CA SOS file no.

Address (apt./ste., room, PO box, or PMB no.)
City (If you have a foreign address, see instructions.)
Principal Amount of Promissory Note

State

ZIP code

Installment Amount

.

Telephone number
Interest Rate

.

.

Repayment Period

%

Number of months

Buyer's/Transferee's Acknowledgment to Withhold
Read the "Buyer/Transferee" information below.

I acknowledge that I am required to withhold on the principal portion of each installment payment to the seller/transferor for the above shown
California real property either at the rate of 3 1/3% (.0333) of the sales price or the Alternative Withholding Calculation, as specified by the
seller/transferor on Form 593, Real Estate Withholding Statement, of the principal portion of each installment payment. I will complete Form 593
for the principal portion of each installment payment and send one copy of each to the Franchise Tax Board (FTB) along with Form 593-V, Payment
Voucher for Real Estate Withholding, the withholding payment, and give one copy of Form 593 to the seller/transferor. I will send each withholding
payment to the FTB by the 20th day of the month following the month of the installment payment. If the terms of the installment sale, promissory
note, or payment schedule change, I will promptly inform the FTB. I understand that the FTB may review relevant escrow documents to ensure
withholding compliance. I also understand that I am subject to withholding penalties if I do not withhold on the principal portion of each installment
payment and do not send the withholding along with Form 593 to the FTB by the due date, or if I do not send one copy of Form 593 to the
seller/transferor by the due date. Go to Side 3, complete the perjury statement and sign.

Part VI Computation
Complete this part if you checked and certified box 3 in Part III, or to calculate an alternative withholding calculation amount.

13. Selling price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13 ____________

14. Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 ____________
15. Amount realized. Subtract line 14 from line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 ____________
16. Enter the price you paid to purchase the property (see instructions, How to Figure Your Basis.) . . . . . . 16 ______________
17. Seller/Transferor-paid points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 _____________
18. Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 _____________
19. Other decreases to basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 _____________
20. Total decreases to basis. Add line 17 through line 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 ______________
21. Subtract line 20 from line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 ______________
22. Cost of additions and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22 _____________

23. Other increases to basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23 _____________

24. Total increases to basis. Add line 22 and line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 ______________
25. Adjusted basis. Add line 21 and line 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25 ____________

26. Enter any suspended passive activity losses from this property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 ______________
27. Add line 25 and line 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 ____________
28. Estimated gain or loss on sale. Subtract line 27 from line 15 and enter the amount here.
If you have a loss or zero gain, skip lines 29 and 30. Certify on Side 3. Withholding is not required.
If you have a gain, go to line 29 to calculate your withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 ____________

Side 2 Form 593 2022

8602233

Escrow or Exchange No.
___________________________
Remitter name

SSN, ITIN, FEIN, CA corp no., or CA SOS file no.

29. Alternative withholding calculation amount. Check the applicable box for the filing type.
• Individual 12.3%
• Corporation 8.84%
• Bank and Financial Corporation 10.84%
• Trust 12.3%
• Non-California Partnership 12.3%
• S Corporation 13.8%
• Financial S Corporation 15.8%
Multiply the amount on line 28 by the tax rate for the filing type selected above and enter the amount here. This is the
alternative withholding calculation amount. If you elect the alternative withholding calculation amount, then check the
appropriate box on line 36, Boxes B-H, and enter the amount on line 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 ____________
30. Sales price withholding amount. Multiply the selling price on line 13 by 31/3% (.0333).
This is the sales price withholding amount. If you select the sales price withholding amount, check box A on
line 36 below and enter the amount on line 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 ____________

Part VII Escrow or Exchange Information

31. Escrow or Exchange Number . . . . . . . . . . . . . . . . . . . . . . . . . . . • 31
32. Date of Transfer, Exchange Completion, Failed Exchange, or Installment Payment . . . . . . . .
33. Sales Price, Failed Exchange, or Boot Amount $ ___________________ x Ownership Percentage
34. Amount that should have been withheld in a cash poor transaction

35. Type of Transaction (Check One Only):
A • Conventional Sale/Transfer
B • Installment Sale Payment

•

..

(mm/dd/yyyy)

.

%

• 32
• 33

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 34

C • Boot
D • Failed Exchange

.

E • Cash Poor

36. Withholding Calculation (Check One Only): •
Sales Price Method
A • 31/3% (.0333) x Sales Price, Boot, or Installment Sale Payment
Alternative Withholding Calculation Election
B • Individual 12.3% x Gain on Sale
C • Non-California Partnership 12.3% x Gain on Sale
D • Corporation 8.84% x Gain on Sale
E • Bank and Financial Corp. 10.84% x Gain on Sale
37. Amount Withheld from this Seller/Transferor . . . . . . .

F • S Corporation 13.8% x Gain on Sale
G • Financial S Corporation 15.8% x Gain on Sale
H • Trust 12.3% x Gain on Sale

.

. . . . . . . . . . . . . . . . . . . . . . . • 37

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.
Our privacy notice can be found in annual tax booklets or online. Go to ftb.ca.gov/privacy to learn about our privacy policy statement, or go to
ftb.ca.gov/forms and search for 1131 to locate FTB 1131 EN-SP, Franchise Tax Board Privacy Notice on Collection. To request this notice by mail, call
800.338.0505 and enter form code 948 when instructed.
Perjury Statement
Under penalties of perjury, I hereby certify that the information provided above is, to the best of my knowledge, true and correct. I further certify that:
Check the applicable box(s):
• The sale is fully exempt from withholding as indicated by a check mark(s) in Part III.
• The sale is fully or partially exempt from withholding as indicated by a check mark in Part IV, box 10 or 11.
• The seller has elected the Alternative Withholding Calculation as indicated by a check mark in Part VII, line 36 (B-H).
• The buyer/transferee understands and accepts the withholding requirements as stated on the Buyer's/Transferee's Acknowledgment to Withhold
in Part V. The buyer/transferee should only check this box when involved in an installment sale.
• The Remitter (Qualified Intermediary) acknowledges this is a cash poor transaction as indicated by a check mark in Part VII, line 35, box E.

Sign
Here

Seller's/Transferor's signature

Date

Seller's/Transferor's spouse's /RDP's signature

Date

X
X

It is unlawful to forge
Buyer's/Transferee's signature
a spouse’s/RDP’s
signature.

Date

X

Buyer's/Transferee's spouse's/RDP's signature

Date

Remitter's name and Title/Escrow business name

Telephone Number

X

8603233

Form 593 2022 Side 3