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Changes to 2009 Forms

Updates to the Form 593-I Instructions on 06/15/2010 –– Real Estate Withholding Installment Sale Acknowledgment

We replaced text on the Form 593-I Instructions on Page 2, Column 1, Additional Information, Toll-free phone number.

Previous Version

888.792.4000

Revised Version

888.792.4900

Reason for the changes

To correct a typo in the toll-free phone number.

Impact

There is no tax impact.


Updates to the 2009 Instructions for Form 593-I -- Real Estate Withholding Installment Sale Acknowledgement

The revised Internet version is available for download as of 01/12/2009.

Revision Details: Based on AB 3078, for taxable years beginning on or after January 1, 2009, the buyer is required to withhold on the principal portion of each installment payment if the sale of California real property is structured as an installment sale. Currently within the Purpose Section of form 593-I, the instructions state, "If you do not complete form 593-I and send it to us, you must withhold either the full 3 1/3 % of the sales price or the optional gain on sale withholding amount on form 593 line 5 certified by the seller." This sentence should have been removed due to changes based on AB 3078.

  • Updated section: Page 1, Column 1, Purpose, Paragraph 2

Previously read:

  • If you are the buyer you must withhold on the principal portion of each installment payment, complete Form 593-I, Real Estate Withholding Installment Acknowledgement, and have your real estate escrow person send the completed Form 593-I, a copy of the promissory note, and seller’s certified Form 593 to the Franchise Tax Board (FTB) with the withholding on the principal portion of the first installment payment. If you do not complete Form 593-I and send it to us, you must withhold either the full 3 1/3% of the total sales price or the Optional Gain on Sale withholding amount on Form 593, line 5, that is certified by the seller.

Revised to:

  • If you are the buyer you must withhold on the principal portion of each installment payment, complete Form 593-I, Real Estate Withholding Installment Acknowledgement, and have your real estate escrow person send the completed Form 593-I, a copy of the promissory note, and seller’s certified Form 593 to the Franchise Tax Board (FTB) with the withholding on the principal portion of the first installment payment.

Back to Tax Form Changes for 2009