2019 593 Booklet Real Estate Withholding
Online Services
Go to ftb.ca.gov and serach for real estate withholding for:
- Forms with Instructions – Find current real estate withholding forms and instructions.
- Publication 1016, Real Estate Withholding Guidelines
- Secure Web Internet File Transfer (SWIFT) – File your information returns electronically.
- Subscription Services – Sign up to receive emails on updated real estate withholding information.
- Webinars – Information on real estate forms.
2019 California Real Estate Forms and Instructions
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and to the California Revenue and Taxation Code (R&TC).
General Information
Real Estate Withholding Requirement
Withholding is required when California real estate is sold or transferred. The real estate escrow person (REEP) is required to notify buyers of withholding requirements, unless the buyer is a qualified intermediary (QI) in a deferred exchange. The amount withheld from the seller or transferor is sent to the Franchise Tax Board (FTB) as required by R&TC Section 19662.
Purpose
Use the forms and instructions in this booklet for real estate sales or transfers closing in 2019. For more information about real estate withholding, get FTB Publication 1016, Real Estate Withholding Guidelines.
Real Estate Withholding Forms to Use During Escrow
Use the charts on the following page to determine which forms you will need to use if you are a real estate seller, buyer, QI, or REEP.
If you are a seller, buyer, REEP, or QI, use this guide to help you get started on California real estate withholding during escrow. For more details, see the individual forms with instructions and FTB Pub.1016.
Seller
Form | Title and Purpose | Required Action |
---|---|---|
593-C | Real Estate Withholding Certificate
Certify that you qualify for a full or partial exemption from real estate withholding. |
|
593-E | Real Estate Withholding – Computation of Estimated Gain or Loss
Calculate whether you have a gain, loss, or zero gain on the real estate sale. |
|
593 | Real Estate Withholding Tax Statement
Report your withholding on the real estate sale, or certify you are using the optional gain on sale withholding calculation method. |
|
Buyer
Form | Title and Purpose | Required Action |
---|---|---|
593-I | Real Estate Withholding Installment Sale Acknowledgment
Disclose the terms of the installment sale transaction and acknowledge you will withhold on each future installment payment. |
|
QI/REEP/Buyer
Form | Title and Purpose | Required Action |
---|---|---|
593-C | Real Estate Withholding Certificate
Verify the seller is exempt from withholding. |
|
593 | Real Estate Withholding Tax Statement
Report withholding on real estate sales or transfers. |
|
593-V | Payment Voucher for Real Estate Withholding
Remit withholding payments on real estate sales or transfers. |
|
593-I | Real Estate Withholding Installment Sale Acknowledgment
Report an installment sale (if applicable). |
|
Go to ftb.ca.gov/forms to get the forms referenced above. For questions about California real estate withholding, contact Withholding Services and Compliance at 888-792-4900 or 916-845-4900.
Information on Installment Payments That Follow the Close of the Real Estate Transaction
The buyer must continue to withhold on all installment payments following the close of the real estate transaction. By the 20th day of the month following the month of each installment payment:
- Complete and file a current tax year Form 593 and the required withholding payment along with Form 593-V.
- Provide a copy of Form 593 to the seller.
Real Estate Withholding Exclusions
The following are excluded from withholding on real estate transactions:
- The United States and any of its agencies or instrumentalities.
- A state, a possession of the United States, the District of Columbia, or any of its political subdivisions or instrumentalities.
How to Get California Tax Information
Additional Information
- Website
- For more information, go to ftb.ca.gov and search for nonwage. MyFTB offers secure online tax account information and services.
For more information, go to ftb.ca.gov and login or register for MyFTB.
- Phone
- 888-792-4900 or
916-845-4900, Withholding Services and Compliance phone service - Fax:
- 916-845-9512
- WITHHOLDING SERVICES AND COMPLIANCE MS F192
Franchise Tax Board
Po Box 942867
Sacramento Ca 94267-0651
For questions unrelated to withholding, or to download, view, and print California tax forms and Publications, see the information below.
Internet and Telephone Assistance
- Website:
- ftb.ca.gov
- Telephone:
- 800-852-5711 from within the United States
916-845-6500 from outside the United States
California Relay Service
711 or 800-735-2929 for persons with hearing or speaking limitations
Asistencia Por Internet y Teléfono
- Sitio web:
- ftb.ca.gov
- Teléfono:
- 800-852-5711 dentro de los Estados Unidos
916-845-6500 fuera de los Estados Unidos
Servicio de Retransmisión de California
711 o 800-735-2929 para personas con limitaciones auditivas o del habla