Form 593 E PDF Details

In the realm of real estate transactions in California, the Form 593-E stands out as a crucial document for sellers. This form, officially titled "Computation of Estimated Gain or Loss," is integral to the process of withholding taxes on real estate sales. Its primary purpose is to determine whether the seller is exempt from withholding due to reporting a loss or zero gain on the sale, or if they choose to elect an optional gain on sale withholding amount. The form necessitates detailed information from the seller, including personal identifiers and specifics regarding the property sold. It meticulously guides through the computation of the selling price, selling expenses, adjustments to basis, and ultimately, the estimated gain or loss on the sale. Notably, Form 593-E plays a significant role in determining the appropriate withholding rate, which varies based on the entity type of the seller and the financial gain realized from the sale. Additionally, this form sets the stage for compliance with California's tax requirements, insisting on accuracy under the penalties of perjury, and emphasizing the importance of consulting with tax professionals for accurate completion. As such, it serves not just as a formality but as a critical financial document ensuring both legal compliance and financial clarity in real estate transactions within the state.

QuestionAnswer
Form NameForm 593 E
Form Length1 pages
Fillable?No
Fillable fields0
Avg. time to fill out15 sec
Other namesform 593, 593 ca form, 593 form 2021, california form 593

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TAXABLE YEAR

Real Estate Withholding —

 

 

CALIFORNIA FORM

2019

 

 

593-E

 

 

Computation of Estimated Gain or Loss

 

 

You are required to complete this form if you claim an exemption due to a loss or zero gain or if you elect an optional gain on sale withholding amount.

Part I – Seller/Transferor Information

Name

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SSN or ITIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

Spouse’s/RDP’s name (if jointly owned)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Spouse’s/RDP’s SSN or ITIN (if jointly owned)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Address (apt./ste., room, PO box, or PMB no.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FEIN CA Corp no. CA SOS file no.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

City (If you have a foreign address, see instructions.)

State

ZIP code

-

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

Part II – Computation

1

Selling price

1 _______________

2

Selling expenses

2 _______________

3

Amount realized. Subtract line 2 from line 1

3 _______________

4Enter the price you paid to purchase the property (If you acquired the property other than by purchase,

 

see instructions, How to Figure Your Basis.)

. . .

. . . . . . . . . . . . . . . . 4

_______________

5

Seller/Transferor-paid points

. 5

_______________

 

6

Depreciation

. 6

_______________

 

7

Other decreases to basis

. 7

_______________

 

8

Total decreases to basis. Add line 5 through line 7

. . .

. . . . . . . . . . . . . . . . 8

_______________

9

Subtract line 8 from line 4

. . .

. . . . . . . . . . . . . . . . 9

_______________

10

Cost of additions and improvements

10

_______________

 

11

Other increases to basis

11

_______________

 

12

Total increases to basis. Add line 10 and line 11

. . .

. . . . . . . . . . . . . . . 12

_______________

13

Adjusted basis. Add line 9 and line 12

. . .

. . . . . . . . . . . . . . . 13

_______________

14

Enter any suspended passive activity losses from this property

. . .

. . . . . . . . . . . . . . . 14

_______________

15

Add line 13 and line 14

. . .

. . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . 15 ______________

16Estimated gain or loss on sale. Subtract line 15 from line 3 and enter the amount here. If you have a loss or zero gain, skip lines 17 and 18. Complete the Seller/Transferor Signature area below and check the box on Form 593-C, Real Estate Withholding Certificate, Part II line 3.

If you have a gain, go to line 17

16 ______________

17Optional gain on sale withholding amount. Check the applicable box for the filing type.

Individual 12.3%

Corporation 8.84%

Bank and Financial Corporation 10.84%

Non-California Partnership 12.3%

S Corporation 13.8%

Financial S Corporation 15.8%

Multiply the amount on line 16 by the tax rate for the filing type selected above and enter the result on line 17. This is the optional gain on sale withholding amount. If you elect the optional gain on sale withholding amount on line 17, get Form 593, Real Estate Withholding Tax Statement, and check the appropriate box on line 4 (Boxes B-G) for the Optional Gain on Sale Election, and transfer the amount on line 17 to Form 593, line 5.

Sign Form 593 to certify the election

17 ______________

18Total sales price withholding amount. Multiply the selling price on line 1 by 31/3% (.0333) and enter the amount on line 18. This is the total sales price withholding amount.

If you select the total sales price withholding amount on line 18, check Box A “31/3% (.0333) x Total Sales Price” on line 4 of

Form 593, and transfer the amount on line 18 to Form 593, line 5

18 ______________

Seller/Transferor Signature

 

Title and escrow persons and exchange accommodators are not authorized to provide legal or accounting advice for purposes of determining withholding amounts. Transferors are strongly encouraged to consult with a competent tax professional for this purpose.

To learn about your privacy rights, how we may use your information, and the consequences for not providing the requested information, go to ftb.ca.gov/forms and search for 1131. To request this notice by mail, call 800.852.5711.

Under penalties of perjury, I declare that I have examined the information on this form, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. I further declare under penalties of perjury that if the facts upon which this form are based change, I will promptly notify the Real Estate Escrow Person (REEP).

Seller’s/Transferor’s Name

 

Seller’s/Transferor’s Signature

Date

It is unlawful to forge

 

 

 

 

 

 

 

Spouse’s/RDP’s Name (if jointly owned)

 

 

 

 

 

a spouse’s/RDP’s

 

 

 

 

 

Spouse’s/RDP’s Signature (if jointly owned)

 

Date

 

signature.

7151193

Form 593-E 2018

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Step number 1 in filling out form 593 california

2. Once your current task is complete, take the next step – fill out all of these fields - Total increases to basis Add line, Adjusted basis Add line and line, Enter any suspended passive, Add line and line, Estimated gain or loss on sale, Complete the SellerTransferor, If you have a gain go to line, Optional gain on sale withholding, Individual NonCalifornia, Bank and Financial Corporation, Corporation S Corporation, If you elect the optional gain on, Boxes BG for the Optional Gain on, Sign Form to certify the election, and Total sales price withholding with their corresponding information. Make sure to double check that everything has been entered correctly before continuing!

Filling in section 2 in form 593 california

As to Individual NonCalifornia and Total increases to basis Add line, be certain that you review things in this current part. Both of these are the key fields in the file.

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