Real Estate Withholding Rates Decrease
As of January 1, 2011, the California real estate withholding rates changed. The optional gain on sale withholding rates decreased for individuals and non-California partnerships to 9.3 percent, S corporations to 10.8 percent, and financial S corporations to 12.8 percent.
Assembly Bill ABX3 3 (Evans, Stat. 2009, Ex. Sess. 2009/2010, Ch. 18) applicable to taxable years beginning on or after January 1, 2009, and before January 1, 2011, resulted in an increase to the optional gain on sale withholding tax rate for individuals, non-California partnerships, S corporations, and financial S corporations. This tax rate increase does not apply to taxable years beginning on or after January 1, 2011.