Information on California Real Estate Withholding Taxes for Sellers Posted on February 14, 2023 (February 23, 2024) by Shirley Kim California state law (California Code, Revenue and Taxation Code – RTC § 18662) states such that all real property being sold requires the payment of tax at the close of escrow in an amount equal to 3.33% of the sales price. An Alternative Calculated Amount can also be used which involves some computations to determine the seller’s gain or…
What is a Certification For No Information Reporting? Posted on July 24, 2018 (July 28, 2018) by Shirley Kim Question: We have a form that we are using but I can’t remember what allowed it. It is titled “Certification For No Information Reporting On The Sale Or Exchange Of A Principal Residence”. It is used to determine if we have to report the sale to the IRS on form 1099-S, Proceeds From Real Estate Transactions….
What is a Substitute Form 1099-S? Posted on June 24, 2018 (July 28, 2018) by Shirley Kim Required Reporting to the I.R.S. Sellers of real property will have certain information regarding the sale reported to the Internal Revenue Service. This required reporting is a consequence of the Tax Reform Act of 1986; it is intended to encourage taxpayer compliance and aid in audit and enforcement efforts by the I.R.S. To help you…
What is CAL-FIRPTA Withholding? Posted on April 23, 2018 (July 28, 2018) by Shirley Kim Unless you have a reason to be familiar with tax laws, you are probably wondering, “what is FIRPTA?”. FIRPTA stands for Foreign Investment in Real Property Tax Act. It is a tax law that ensures foreign taxpayers pay income tax on their sale of US real estate. Read on for more information about what FIRPTA is and how it…
What is the 593-C Form? Posted on January 22, 2018 (February 23, 2024) by Shirley Kim California Real Estate Withholding For Sellers of Real Property (California Revenue and Taxation Code Section 18662) How Much Taxes Are Withheld From the Sale of Real Property? All real property being sold requires the payment of tax at the close of escrow in an amount equal to 3.33% of the sales price. If the seller…
