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FTB issues new withholding forms for real estate
sales
As a result of your feedback and suggestions we have
developed new withholding forms for real estate sales closing in 2004
and made clarifying changes to some of the existing ones. The new forms
are available on our Website, however, continue to use the 2003 forms
for real estate sales closing in 2003.
New forms
The new forms will replace Form 597, Real Estate
Withholding Tax Statement, which will change the remittance process from
a transaction-by-transaction basis to one remittance for all withholding
during the month. The new forms include:
1) Form 593, Real Estate Withholding Remittance
Statement. Use this form:
- To report and remit the total real estate withholding for the
month.
- To report and remit any interest assessed on late withholding
payments for 2004.
- As the transmittal form for Form 593-B, Real Estate Withholding
Tax Statement.
2) Form 593-B, Real Estate Withholding Tax Statement.
Use this form to report the real estate withholding for each seller.
Form 593-B is similar to Form 597; however, we added new fields to aid
in the computation of the withholding amount. Also, the instructions are
expanded to include instructions on regular sales, exchanges, and
installment sales.
This new remittance process allows escrow and
exchange companies to generally send one (1) payment after the close of
the month with one (1) Form 593 and with all the Form 593-Bs for the
month attached. Before using these new forms, please be sure to read the
instructions carefully.
Significant form updates
On Form 593-C, Real Estate Withholding Certificate
for Individual Sellers, we deleted language pertaining to exemptions for
sales of $100,000 or less. Such sales are automatically exempt from
withholding, and the law does not require certification for the
exemption.
On Form 593-W, Real Estate Withholding Exemption Certificate and Waiver
Request for Non-Individual Sellers, we deleted language pertaining to
exemptions for sales of $100,000 or less, and sales by a bank or a bank
acting as a fiduciary for a trust. Such sales are automatically exempt
from withholding, and the law does not require certification for the
exemption.
We simplified Form 593-L, Real Estate Withholding-Computation of Gain or
Loss by making some of the entries optional (See Form 593-C/Form 593-L
Booklet). |
