CAR Member Legal Services Article Updates

Published: October 3, 2007

<p class="MsoNormal"><font face="Arial" color="#000000" size="2"><span style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial">Member Legal Services has published a revised legal article, <a title="" href="">California Withholding Tax on the Sale of Real Property</a> (October 1, 2007).  It is available on Legal's <a title="/exchweb/bin/redir.asp?URL=<br />" href="" target="_blank">What's New</a> and the <a title="/exchweb/bin/redir.asp?URL=<br />" href="" target="_blank">Legal Articles</a> pages on<i><span style="FONT-STYLE: italic"> C.A.R. Online</span></i>. </span></font><font face="Arial" color="#000080" size="2"><span style="FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial"> </span></font><font face="Arial" color="#000000" size="2"><span id="ms__id1711" style="FONT-SIZE: 10pt; COLOR: black; FONT-FAMILY: Arial">This legal article has been updated since the law has substantively changed subsequent to the last publication of the article in 2005.  This article discusses the basic rule that buyers must withhold and remit to the California Franchise Tax Board 3 1/3 % of the total sales price upon the sale (transfer) of California real property unless an exemption applies. All the exemptions are listed in Question 3 and discussed in greater detail throughout the article.  A few changes in the law are as follows:  Reduced withholding is now available under certain circumstances; new forms are required (FTB 593-C and 593-E), and the law now permits an alternative withholding amount (percent).  The article includes links to the required forms as well as a link to the FTB brochure, “Real Estate Withholding Guidelines.” <p /></span></font></p>

Last modified: October 3, 2007 at 2:22 pm | Originally published: October 3, 2007 at 2:22 pm
Printed: September 30, 2020