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Confidential Supplement to Application for Earnings Withholding Order for Taxes California Form

Confidential Supplement to Application for Earnings Withholding Order for Taxes California Form

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hi this is Jackie schulerman with shorterman group of Coldwell Banker today we're going to be discussing understanding withholding tax in California California has been withholding the prepayment of taxes for real estate transaction involving non-residents for many years as of January 1 2003 the withholding law were amended to also apply to the disposition of California real estate by both residents and non-residents the state regulations regarding withholding on Real Property sell is little different from the federal withholding of foreigners under the verbto guidelines for the state the law is written such that all real property being sold requires a payment of tax at the close of escrow in an amount equal to 3.5 third percent of the sale price an alternative calculated amount can also be used the amount is withheld by the settlement agent from the seller's account at the closing of the transaction and send it to the Franchise Tax Board the withholding applies to all

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