Welcome Guest. Register Now!  


California CA


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 09-24-2008, 10:11 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,397
Blog Entries: 3
California State Tax Update on Withholding on Sale of California Real Estate!

According to the Franchise Tax Board (FTB), "for transactions occurring on or after January 1, 2007, that require withholding, a seller of California real estate may elect an alternative to withholding 3 1/3 percent of the total sales price."

Further, the FTB states that "the seller may elect an alternative withholding amount based on the maximum tax rate for individuals, corporations, or banks and financial corporations, as applied to the gain on the sale. The seller is required to certify under penalty of perjury the alternative withholding amount to the Franchise Tax Board."

Also, the FTB states that "for real estate installment sales, if a buyer receives a seller’s certification as to an alternative withholding election, the buyer would be required to withhold either the full alternative withholding amount at the time of sale or an alternative withholding percentage on the amount of each installment payment."

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
California State Tax Information TaxGuru California 0 09-20-2008 12:45 PM
What penalty does California State assess for a late filing of an LLC Tax Return? mabalone California 1 09-04-2008 10:22 AM
How many Corporation Income Tax Rates does California State have for Tax Year 2008? TaxGuru California 0 08-30-2008 09:17 PM
What is the Minimum Franchise Tax for C Corporation in the State of California? Andreas C-Corporation 1 03-01-2008 05:20 PM
Is my California State refund taxable on Federal Tax Return? pinky Income 1 01-28-2007 11:17 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning