Posted by William L Exeter on July 07, 2003 at 01:38:59:
Yes, this is NOT a new tax but is actually a withholding tax (or estimated tax payment, if you will). The withheld tax is credited toward the actual tax that you owe on your tax return and my result in a refund if you have an overpayment.
Bill Exeter
Diversified Exchange Corporation
California Withholding Tax - Posted by Josephine
Posted by Josephine on July 01, 2003 at 14:01:59:
I am a nonresident of California and am selling a rental property in California. Is there anyway to reduce the California Withholding Tax?
Re: California Withholding Tax - Posted by Diane (TX)
Posted by Diane (TX) on July 01, 2003 at 19:31:54:
You can exempt yourself from withholding if you certify that you’re selling at a loss, or that you will do a 1031 exchange. However, if you’re selling at a gain in a taxable transaction, withholding applies. Here are some possible exceptions:
http://www.ftb.ca.gov/geninfo/wscs/FTB672.pdf .
Re: California Withholding Tax - Posted by Steve in San Fran
Posted by Steve in San Fran on July 03, 2003 at 19:15:18:
Let me also suggest that you discuss this issue with your title company’s Escrow Officer well in advance of closing. There’s a standard State of CA form they can send you in advance that must be completed at closing. Your answers will determine whether they withhold the tax & you can address any questions ahead of time & possibly qualify for an exception depending on your specific situation. Good luck!
Steve
Re: California Withholding Tax - Posted by Josephine
Posted by Josephine on July 03, 2003 at 22:53:20:
Ok, thanks. The escrow officer was out for vacation but I talked to her assistant and she said I basically could do a 1031, which don’t want to do. Don’t see any other options except to pay. Is any of this refundable at taxtime? Thanks for all the help.
Jo