If California real estate withholding was reported on your Form 593, Real Estate Withholding Statement, the withholding may generally be claimed as a credit on the California income tax return of the seller or transferor. Real estate withholding is generally a prepayment of California income tax due on the sale or transfer of California real property and is credited against the taxpayer's California income tax liability when the return is filed.
What Is Form 593?
Form 593, Real Estate Withholding Statement, is used to report California real estate withholding and any applicable withholding exemptions for certain California real property transactions. The form is submitted to the FTB as part of the withholding process.
What You'll Need
Have a copy of your Form 593 available and locate the withholding amount reported on the form, which you will need to enter into the program.
Program Pathway
- State
- Edit California State Return (3 dots and select Edit)
- Payments
- CA Real Estate Withholding (from Form 593)
Additional Information
- Real estate withholding applies to certain California real property sales and transfers and is generally a prepayment of California income tax.
- Certain transactions are exempt from withholding, including transactions where the sales price is $100,000 or less, foreclosure transactions, and other qualifying exemptions listed on Form 593.
- The amount withheld is not an additional tax. It is generally treated as a payment toward the taxpayer's California income tax liability and may increase a refund or reduce any balance due.
- Keep a copy of Form 593 with your tax records to support the withholding credit claimed on your return.
For additional information please refer to this CA Franchise Tax Board article here.