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Real estate withholding - compute estimated gain or loss online

Need some quick help calculating the correct amount to withhold on real estate transactions? Our online Form 593-E, Real Estate Withholding – Computation of Estimated Gain or Loss, will calculate the correct withholding for you.

AB 2962, signed into law on September 22, 2006, changes real estate withholding requirements for all transactions closing on or after January 1, 2007 (see November Tax News). Sellers now have
a choice:

  • Withhold three and one-third percent of the property’s sale price.

     OR

  • Elect an alternative withholding amount based on applying the maximum tax rate to the estimated gain.

Sellers can calculate the estimated gain or loss on the sale using Form 593-E, Real Estate Withholding – Computation of Estimated Gain or Loss by entering information like selling price, expenses, and depreciation. The form will calculate the estimated gain or loss, the standard withholding amount, and the alternative withholding amount.

You can find this form on our Website at www.ftb.ca.gov, by searching for “593-E.”