Real estate withholding law changes. (FTB News).New withholding requirements recently enacted by the state affect all individuals who sell California real property. Beginning Jan. 1, escrow companies must withhold 3-1/3 percent of the sales price of any real estate sold that is more than $100,000, not a personal residence, and not a 1031 exchange, 1033 involuntary conversion or a foreclosure. The only exception to the withholding requirement is if the seller signs under penalty of perjury perjury n. the crime of intentionally lying after being duly sworn (to tell the truth) by a notary public, court clerk or other official. This false statement may be made in testimony in court, administrative hearings, depositions, answers to interrogatories, as well as by signing or acknowledging a written legal document (such as affidavit, declaration under penalty of perjury, deed, license application, tax return) known to contain false information. that there is a loss on the sale. Unlike current law for nonresident real estate withholding, the FTB cannot allow a reduced amount of withholding based on the true gain (R&TC [ss]18662, as amended by AB 2065, Ch. 02-488). A Q&A about the changes can be found at www.calcpa.org/members/knowledge/articles/2003realestate.html. A quick reference guide is at www.calcpa.org/members/knowledge/articles/realestatequickref.html. |
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