CLTA News Express
An Express Article from the California Land Title Association
Information Regarding California Real Estate Withholding
Bulletin 06/07-133 - May 15, 2007
Please read the important information below from the Franchise Tax Board regarding California Real Estate Withholding.
Background
SB 1827 (Stats. 2006, Ch. 802) requires registered domestic partners (RDP's) to use the same filing status as married couples when filing tax returns. This is effective for tax years beginning on or after January 1, 2007, for tax returns that will be filed beginning January 1, 2008.
How does this impact sales of California real property?
Beginning January 1, 2007, RDP's who sell or transfer jointly owned CA real property that will be reported on their 2007 or later tax return will be treated as spouses for purposes of completing FTB 593 series of forms (593-B, 593-I, 593-C, & 593-E).
How does this affect the Real Estate Escrow Persons responsibilities?
Effective immediately, you may provide RDP's with a combined Form 593-B, listing both partners for the completed real estate.
Forms
The forms and instructions for 2008 will be updated to reflect this change. Until then, continue to use the existing 2007 forms from our website: http://www.ftb.ca.gov/forms/07_forms/index.asp
For more information
- Go to the FTB RDP website: http://www.ftb.ca.gov/forms/RegDomPrtnr/RegDomPrtnr.html
- Real Estate Hot Topics on the FTB public website http://www.ftb.ca.gov/individuals/wsc/California_Real_Estate.html
- SB 1827 (Stats. 2006, Ch. 802) – Legislative Bill Text
- Call 1-888-792-4900 and a FTB Real Estate Withholding representative can assist you.
