California Form 597 W PDF Details

California Form 597-W is the key document business owners and individuals in California use to calculate the net income tax they owe to the state each year. The form can be daunting for first timers, but with a little preparation it can be straightforward to complete. This blog post will provide an overview of how to fill out California Form 597-W, including what steps to take and which sections apply to you. Knowing what's required on this form can help ensure you're paying the correct amount of tax and avoid any costly penalties. So let's get started!

QuestionAnswer
Form NameCalifornia Form 597 W
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other names597w, ca 597 exemption form, ca dor 597 w form, ca 597 w

Form Preview Example

YEAR

20

Withholding Exemption Certificate and

 

 

CALIFORNIA FORM

 

Nonresident Waiver Request for Real Estate Sales

597-W

Part I Withholding Exemption Certificate

Seller’s Information

Name

 

Social security no. CA corp. no. FEIN SOS file no.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Address

 

PMB no.

 

 

Note:

Failure to furnish your tax identifica-

 

 

 

 

 

 

 

 

 

 

 

 

 

tion number will void this certificate.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

City, State, ZIP Code

Phone number

 

 

 

 

 

 

 

Ownership

 

 

 

(

)

 

 

 

 

 

 

 

 

 

 

percentage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property address (if no street address, provide parcel number and county)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Read the following and check the boxes as they apply (see General Information C, Exemptions from Withholding (Part I)

 

 

 

 

 

 

 

 

in the instructions for definitions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YES

NO

1. Is the total sale price of this property $100,000 or less?

.

. . .

 

. . . .

.

. .

. .

. .

. .

. .

. .

. . . . .

. . . .

. .

. .

2.Are you a resident of California? If yes, provide your California street address, city, and ZIP Code.

 

__________________________________________________________________________________________________________

3.

Does the property being sold qualify as your principal residence within the meaning of Internal Revenue Code (IRC) Section 121? .

4.

Is the seller a corporation that is qualified through the California Secretary of State or has a permanent place of

 

 

business in California? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Is the seller a partnership or a limited liability company (LLC) with recorded title to the property in the name of the partnership or LLC and will the partnership or LLC file a California tax return to report the sale and withhold on foreign and domestic nonresident partners as required? (Get FTB Pub. 1017, Nonresident Withholding Partnership Guidelines, for withholding information.) . . . . . . . .

6. Is the seller a tax-exempt entity under either California or federal law? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7. Is the seller an irrevocable trust with at least one trustee who is a California resident and will the trust file a California tax return to

report the sale and withhold when distributing California source taxable income to nonresident beneficiaries as required?

8.Is the seller an estate where the decedent was a California resident at the time of death and will the estate file a California fiduciary tax

return to report the sale and withhold when distributing California source taxable income to nonresident beneficiaries as required? . . .

9. Is the seller a bank or a bank acting as a fiduciary for a trust? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10. Is the seller an insurance company, Individual Retirement Account (IRA), or qualified pension/profit sharing plan? . . . . . . . . . . . . . .

Under penalties of perjury, I hereby certify that the information provided above is, to the best of my knowledge, true and correct. If conditions change, I will promptly inform the withholding agent. I understand that completing this form does not exempt me from filing a California income tax return to report this sale.

Seller’s name (or seller’s agent if seller is

not an individual) and title (type or print) ____________________________________________________________________________________________

Seller’s Signature_____________________________________________________________________________ Date:___________________________

If you answered “Yes” to any of the above questions, STOP HERE. You are exempt from the nonresident withholding requirements. Provide this form to your escrow company or the buyer (withholding agent).

If you answered “NO” to all of the above questions, you are subject to the nonresident withholding requirements. The required withholding is 3 1/3% of the total sale price. Do you expect your tax liability from the sale of this property to be substantially less than that amount? If so, would you like to request a reduced amount of withholding?

Yes. Complete the Nonresident Withholding Waiver Request (Part II) and send this form to the Franchise Tax Board (FTB).

No. STOP HERE. Your escrow officer will withhold 3 1/3% of the total sale price and send it to FTB on your behalf. Obtain the seller’s copy of Form 597, Nonresident Withholding Tax Statement for Real Estate Sales, from the escrow officer to attach to your California income tax return when you file and claim the amount withheld.

Escrow Officer: If withholding is required, complete Form 597, Nonresident Withholding Tax Statement for Real Estate Sales, and send one copy to the FTB with the payment of withholding and give two copies to the seller. The seller needs a copy of Form 597 to claim the withholding credit on the California tax return filed to report the sale.

For Privacy Act Notice, get form FTB 1131.

597W01109

Form 597-W (REV 2001) Side 1

Part II Nonresident Withholding Waiver Request (please print or type)

Seller’s Information

Name of seller (see instructions if more than one)

 

 

 

 

Seller’s Entity Type

Seller’s social security number (SSN)

 

 

 

 

 

 

 

 

 

 

 

Individual(s)

 

 

-

 

-

 

 

 

Mailing address

 

 

PMB no.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporation

California corporation no. FEIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

S Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

City, state, and ZIP Code (province, country, and postal zone)

 

 

 

 

 

Seller’s spouse’s SSN (if applicable)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estate

 

 

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust

 

 

 

 

 

 

 

 

 

 

Phone number

 

 

Ownership

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Seller’s email address

(

)

 

 

percentage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Information

 

 

 

 

 

 

 

 

 

 

 

 

Property Address (if no street address, provide parcel number and county):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Seller acquired property by (check one):

 

 

 

 

Date seller acquired property:

 

 

 

 

 

 

 

 

 

 

Purchase

Inheritance

Foreclosure/Repossession

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gift

 

1031 Exchange

call (888) 792-4900 U.S. toll-free

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Seller’s adjusted basis:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

or (916) 845-4900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other____________________

 

 

 

 

 

 

Purchase price

$

____________________________

 

 

 

 

 

 

 

 

 

 

Add: improvements

 

____________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Use of property at time of sale:

Length of time used for this purpose:

 

 

 

 

 

 

 

Less: depreciation

 

____________________________

 

 

 

 

Rental / Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted basis

$

____________________________

 

 

 

 

Secondary / Vacation home

Years ________ Months _________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vacant land

 

 

 

 

 

Provide all required documentation listed in the instructions. Attach any other

Other (attach explanation)

 

 

 

 

documents necessary to verify the adjusted basis.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Escrow Information

 

 

 

 

 

 

 

 

 

 

 

 

Name and address of Escrow Company:

 

 

 

 

 

Escrow Company email address

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name of Escrow Officer:

 

 

 

 

Escrow number:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Escrow Company or Officer

 

 

FAX number:

 

 

 

 

 

 

 

 

telephone number:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(

)

 

 

 

(

 

)

 

 

 

 

 

 

 

 

 

 

 

 

Contract price (total sale price):

 

Estimated close of escrow date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Buyer’s Information

Name of buyer (see instructions if more than one)

Buyer’s social security number (SSN)

Address (number and street, PO box or rural route)

PMB no. (if applicable)

California corporation no. FEIN

City, state, and ZIP Code (province, country, and postal zone)

Buyer’s spouse’s SSN (if applicable)

State in detail your reason for requesting a withholding waiver or reduced withholding. If there is more than one nonresident seller, attach a separate sheet listing additional nonresident seller’s information. See instructions for examples of situations for which a waiver or reduced withholding is allowed and for the required information and documentation.

Attach additional sheets if needed. The FTB cannot make a determination on your request unless you provide all required information and documentation. See instructions.

Under penalties of perjury, I hereby certify that the information provided above is, to the best of my knowledge, true and correct. If conditions change, I will promptly inform the withholding agent. I understand that completing this form does not exempt me from filing a California income tax return to report this sale.

Seller’s name (or seller’s agent if seller is

not an individual) and title (type or print) ____________________________________________________________________________________________

Seller’s Signature ____________________________________________________________________________________ Date: _____________________

Side 2 Form 597-W (REV 2001)

597W01209

How to Edit California Form 597 W Online for Free

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To be able to finalize this PDF document, be sure you enter the right details in each field:

1. Begin filling out the 597 w withholding exemption form with a group of major fields. Consider all of the necessary information and make certain there's nothing neglected!

Writing section 1 of 597w

2. The subsequent part is usually to complete these particular fields: Is the seller a partnership or a, Is the seller a taxexempt entity, Is the seller an irrevocable, report the sale and withhold when, Is the seller an estate where the, return to report the sale and, Is the seller a bank or a bank, Is the seller an insurance, Under penalties of perjury I, Sellers name or sellers agent if, Sellers Signature Date, If you answered Yes to any of the, and If you answered NO to all of the.

Writing section 2 in 597w

3. Within this step, review Yes No, Complete the Nonresident, Escrow Officer, If withholding is required, For Privacy Act Notice get form, and Form W REV Side . Each of these will need to be completed with highest accuracy.

597w conclusion process outlined (portion 3)

4. This next section requires some additional information. Ensure you complete all the necessary fields - Name of seller see instructions if, Sellers Information, Mailing address, PMB no, City state and ZIP Code province, Phone number, Ownership percentage, Property Information, Property Address if no street, Sellers Entity Type, Individuals Corporation S, Sellers social security number SSN, California corporation no FEIN, Sellers spouses SSN if applicable, and Sellers email address - to proceed further in your process!

Part number 4 in filling in 597w

Regarding Phone number and Name of seller see instructions if, ensure that you don't make any errors in this current part. These are certainly the most important ones in the document.

5. When you come near to the conclusion of this form, there are actually just a few extra requirements that should be satisfied. Particularly, Name and address of Escrow Company, Escrow Company email address, Name of Escrow Officer, Escrow number, Escrow Company or Officer, FAX number, Estimated close of escrow date, Name of buyer see instructions if, Buyers social security number SSN, Buyers Information, Address number and street PO box, PMB no if applicable, California corporation no FEIN, City state and ZIP Code province, and Buyers spouses SSN if applicable must all be done.

Find out how to prepare 597w step 5

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