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State of California Franchise Tax Board

Changes to 2010 Forms

Updates to the 593 Booklet on 11/04/2010 –– Real Estate Withholding Booklet

We replaced text on the 593 Booklet on:

  1. Page 2, in Column 1, General Information, 2nd Paragraph, Installment Sales

  2. Page 4, below page title at the top of the page

Previous Version

  1. For taxable years beginning on or after January 1, 2009, buyers are required to withhold on the principal portion of each installment payment if the sale of California real property is structured as an installment sale.

  2. References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2005, and to the California Revenue and Taxation Code (R&TC).

Revised Version

  1. For installment sales occurring on or after January 1, 2009, buyers are required to withhold on the principal portion of each installment payment if the sale of California real property is structured as an installment sale.

  2. References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2009, and to the California Revenue and Taxation Code (R&TC).

Reason for the changes

  1. AB 3078 was chaptered on 09/28/2008 and amended R&TC Section 18662(i)(1) regarding installment sales. This revision will make the installment sales paragraph in agreement with the language in AB 3078.

  2. On April 12, 2010, SB 401, the Conformity Act of 2010 was enacted. The Act changes California’s conformity date to the Internal Revenue Code from January 1, 2005, to January 1, 2009, for taxable years beginning on or after January 1, 2010.

Impact

There is no tax impact. This revision will allow buyers to withhold for installment sales occurring beginning on or after January 1, 2009, instead of for taxable years beginning on or after January 1, 2009.

Back to Tax Form Changes for 2010

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