Quick Reference Guide for California Real Estate Withholding October 2020 Tax News

As of January 1, 2020, the real estate community is required to report withholding from any real estate transaction using the consolidated Real Estate Withholding Statement (Form 593).

Through our outreach efforts, we identified a need to provide additional assistance regarding who completes which parts of Form 593. If you are a seller, buyer, real estate escrow person (REEP), or qualified intermediary (QI), we created a quick reference guide, California Real Estate Withholding (FTB 4064) to help you complete Form 593, and Payment Voucher for Real Estate Withholding (Form 593-V).

This guide clarifies the process and explains the responsibilities of the remitter, seller, and buyer for each type of real estate transaction:

  • Traditional sales with full exemption from withholding
  • Traditional sales with partial exemption from withholding
  • Traditional sales with no exemption from withholding
  • Installment sales
  • Like-kind exchanges (failed or with boot)

The Quick Reference Guide California Real Estate Withholding (FTB 4064) is available on our website by request only.

For more information, refer to the Form 593 instructions.

We also recently updated Real Estate Withholding Guidelines (FTB Publication 1016). You may also go to our website to request this publication.