What Is A 593 Tax Mean

Today I was told that in California I had to pay a certain tax called 593. I have never heard of it. confused

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  • DaveT27th February, 2004

    When California real estate is sold, 3 1/3 percent of the total sales price must be withheld from the seller and sent to the California Franchise Tax Board (California Revenue and Taxation Code Section 18662).

    Withholding of 3 1/3 percent is not required if: the total sales price is $100,000 or less; the property is being foreclosed upon; or the seller meets certain requirements.

    If you are a seller: Use Form 593-C, Real Estate Withholding Certificate for Individual Sellers, to determine whether you qualify for a full or partial withholding exemption.
    Use Form 593-L, Real Estate Withholding – Computation of Estimated Gain or Loss, to determine if you will have a loss or zero gain on the sale.When withholding is required, the withholding agent will complete Forms 593 and 593-B and send them with the withholding payment to the Franchise Tax Board. Form 593, Real Estate Withholding Remittance Statement, and Form 593-B, Real Estate Withholding Tax Statement, have replaced Form 597, Real Estate Withholding Tax Statement, for sales closing on or after January 1, 2004.

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