Chat with an FTB Representative

Changes to 2012 Forms

Updates to the 593 Booklet on 12/21/2012 –– Real Estate Withholding Booklet

We replaced text on the instructions on Page 2, Column 1, General Information Section, Paragraph1.

Previous Version

For taxable years beginning on or after January 1, 2011, the maximum personal income tax rate is 9.3%. In addition, non-California partnerships are subject to withholding requirements on a sale of California real property at a rate of
3 1/3% (.0333) of sales price or 9.3% of gain. The alternative withholding rate for the gain on sale of California real property by S corporations is 10.8% and 12.8% for financial S corporations.

Revised Version

For taxable years beginning on or after January 1, 2012, the maximum personal income tax rate is 12.3%. In addition, non-California partnerships are subject to withholding requirements on a sale of California real property at a rate of
3 1/3% (.0333) of sales price or 12.3% of gain. The alternative withholding rate for the gain on sale of California real property by S corporations is 13.8% and 15.8% for financial S corporations.

Reason for the changes

In November 2012 Proposition 30 was passed by California voters. This ballot measure increased the maximum personal income tax rate for taxable years beginning on or after January 1, 2012, from 9.3% to 12.3%. As a result of the personal income tax rate increase, the alternative withholding rate for the gain on sale of California real property by individuals and non-California partnerships increased from 9.3% to 12.3%. The gain on sale of California real property by S corporations increased from 10.8% to 13.8% and from 12.8% to 15.8% for financial S corporations. We are revising the form and instructions to reflect the increase in the rates.

Impact

No tax impact.

Back to Tax Form Changes for 2012