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Changes to 2012 Forms

Updates to the Form 593-E on 12/21/2012 –– Real Estate Withholding - Computation of Estimated Gain or Loss

We replaced text on Line 17, percentages for Individual, Non-CA Partnership, S Corporation, and Financial S Corporation.

Previous Version

Form 593-E, Line 17
Individual 9.3% Corporation 8.84% Bank and Financial Corporation 10.84%
Non-California Partnership 9.3% S Corporation 10.8% Financial S Corporation 12.8%

Revised Version

Form 593-E, Line 17
Individual 12.3% Corporation 8.84% Bank and Financial Corporation 10.84%
Non-California Partnership 12.3% S Corporation 13.8% Financial S Corporation 15.8%

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