YEAR
2011
Real Estate Withholding Installment Sale
Acknowledgement
CALIFORNIA FORM
593-I
(This form should only be completed by the buyer. This is not a remittance document.)
Part I – Buyer’s Information
First name
Initial Last name
SSN or ITIN
Spouse‘s/RDP‘s first name (if jointly purchased)
Initial Last name
Spouse’s/RDP’s SSN or ITIN
-
-
FEIN CA Corp no. SOS file no.
Business name (if applicable)
Address (apt./suite, room, PO Box, or PMB no.)
City
State
ZIP Code
Property address (if no street address, provide parcel number and county)
-
Daytime telephone number
(
)
-
Part II – Seller’s Information
First name
Initial Last name
SSN or ITIN
Spouse‘s/RDP‘s first name (if jointly sold)
Initial Last name
Spouse’s/RDP’s SSN or ITIN
-
-
FEIN CA Corp no. SOS file no.
Business name (if applicable)
Address (apt./suite, room, PO Box, or PMB no.)
City
State
ZIP Code
-
Installment Withholding Percent Apply this percent
____ ____ . ____ ____%
to all installment
payments.
I acknowledge that the buyer is required to withhold on the principal portion of each installment payment.
Part III – Installment Acknowledgement
Attach to Form 593-I, Real Estate Withholding Installment Sale Acknowledgement, a copy of the signed promissory note. If the seller elected and certified the
Optional Gain on Sale withholding amount, also attach an executed copy of seller’s certification of Form 593, Real Estate Withholding Tax Statement, to Form 593-I.
Part IV – Buyer’s Acknowledgement to Withhold (Read the “Buyer” information below before you sign.)
I acknowledge that I am required to withhold on the principal portion of each installment payment to the seller for the above shown California real property
either at the rate of 3 1/3% (.0333) or the Optional Gain on Sale withholding percentage, as specified by the seller on Form 593, Real Estate Withholding Tax
Statement, of the principal portion of each installment payment. I will complete Form 593 for the principal portion of each installment payment and send one
copy of each to the Franchise Tax Board along with Form 593-V, Payment Voucher for Real Estate Withholding, the withholding payment, and give one copy of
Form 593 to the seller. I will send each withholding payment to the Franchise Tax Board by the 20th day of the month following the month of the installment
payment. If the terms of the installment sale, promissory note, or payment schedule change, I will promptly inform the Franchise Tax Board. I understand that
the Franchise Tax Board may review relevant escrow documents to ensure withholding compliance. I also understand that I am subject to withholding penalties
if I do not withhold on the principal portion of each installment payment and do not send the withholding along with Form 593 to the Franchise Tax Board by the
due date, or if I do not send one copy of Form 593 to the seller by the due date.
Print name and title______________________________________________________________________________________________________________
Buyer’s signature _ ________________________________________________________________________________ Date: ________________________
It is unlawful to forge
a spouse’s/RDP’s
signature.
Buyer:
Seller:
Real Estate
Escrow Person:
Buyer’s spouse’s/RDP’s name (if on title) ______________________________________________________________________________
Buyer’s spouse’s/RDP’s signature (if applicable) ____________________________________________ Date: __________________________
Make sure you copy all pages so you will have the instructions for withholding on subsequent payments. Provide the original Form 593-I,
along with copies of the promissory note and seller’s certified Form 593, to your real estate escrow person, who will mail the forms and remit
the payment to the Franchise Tax Board. Your real estate escrow person will withhold on the principal portion of the first installment payment.
You must withhold on the principal portion of all subsequent installment payments (including payoff or balloon payments). Complete
Form 593 and Form 593-V, and mail the documents and payment to the Franchise Tax Board for the principal portion of each installment
payment.
Make a copy of this form for your records.
Make a copy of this form for your records. Mail Form 593-V, the original Form 593-I, a copy of the promissory note, and seller’s certified
Form 593 to the Franchise Tax Board with the required amount of the first installment payment.
For Privacy Notice, get form FTB 1131.
7141113
Form 593-I C2 2010
Instructions for Form 593-I
Real Estate Withholding Installment Sale Acknowledgment
What’s New
For taxable years beginning January 1, 2010,
use Form 593-V, Payment Voucher for Real
Estate Withholding, to submit real estate
withholding payments. Do not use Form 593,
Real Estate Withholding Tax Statement,
or Form 593-I, Real Estate Withholding
Installment Sale Acknowledgement, to remit
payments.
General Information
Installment Sales – For installment sales
occurring on or after January 1, 2009, buyers
are required to withhold on the principal
portion of each installment payment if the sale
of California real property is structured as an
installment sale.
Registered Domestic Partners (RDP) – Under
California law RDPs must file their California
income tax returns using either the married/
RDP filing jointly or married/RDP filing
separately filing status. RDPs have the same
legal benefits, protections, and responsibilities
as married couples unless otherwise specified.
If you entered into a same-sex legal union in
another state, other than a marriage, and that
union has been determined to be substantially
equivalent to a California registered domestic
partnership, you are required to file a California
income tax return using either the married/RDP
filing jointly or married/RDP filing separately
filing status.
For purposes of California income tax,
references to a spouse, husband, or wife also
refer to a California RDP, unless otherwise
specified. When we use the initials RDP they
refer to both a California registered domestic
“partner” and a California registered domestic
“partnership,” as applicable. For more
information on RDPs, get FTB Pub. 737, Tax
Information for Registered Domestic Partners.
Purpose
When California real estate is sold on an
installment basis, the buyer is required to
withhold on the principal portion of each
installment payment, an amount based on
either 3 1/3% (.0333) of the total sales price,
or the Optional Gain on Sale withholding
amount from Form 593, line 5, which is
certified by the seller. There is no withholding
on the interest portion of the installment
payment.
If you are the buyer, you must withhold on the
principal portion of each installment payment
and complete Form 593-I. Have your real
estate escrow person send the completed
Form 593‑I, a copy of the promissory note, the
seller’s certified Form 593, and Form 593‑V,
to the Franchise Tax Board (FTB) with the
withholding on the principal portion of the first
installment payment.
The withholding agent retains this form for a
minimum of five years and must provide it to
the FTB upon request.
Specific Instructions
Buyer Instructions
Complete all four parts of Form 593-I.
Part I – Buyer’s Information
Enter your name as it is shown on the escrow
instructions. Each buyer is required to withhold
on individual payments and must complete
a separate Form 593-I. However, if you are
purchasing the property with your spouse/RDP
and both of you will be on the promissory
note, then include both of your names, social
security numbers (SSNs) or individual taxpayer
identification numbers (ITINs), and signatures
on one form. If the buyer is a business, enter
the business name in the business name field.
The buyer’s identification number (SSN, ITIN,
federal employer identification number (FEIN),
CA corporation (Corp) no., or Secretary of
State (SOS) file no.) is required on each form
to be valid.
Foreign Address – Enter the information in
the following order: City, Country, Province/
Region, and Postal Code. Follow the country’s
practice for entering the postal code. Do not
abbreviate the country’s name.
Part II – Seller’s Information
Enter the seller’s name as it is shown on
the escrow instructions. Use a separate
Form 593‑I for each seller included on the
promissory note. However, if the sellers are
spouses/RDPs and both of them will be on the
promissory note, then include both of their
names and SSNs or ITINs on one form. If the
seller is a business, enter the business name in
the business name field.
The seller’s identification number (SSN, ITIN,
FEIN, CA Corp no., or SOS file no.) is required
on each form to be valid.
If the seller is electing the Optional Gain
on Sale withholding amount, ask the seller
to provide you the installment withholding
percentage that the seller calculated in the
instructions for the Form 593. Include this
installment withholding percentage in the
appropriate box and use this percentage as
part of the calculation for withholding on the
principal portion of each installment payment.
Foreign Address – Enter the information in
the following order: City, Country, Province/
Region, and Postal Code. Follow the country’s
practice for entering the postal code. Do not
abbreviate the country’s name.
Part III – Installment
Acknowledgment
Attach a copy of the signed promissory note to
Form 593-I, and the seller’s signed certification
of Form 593.
Part IV – Buyer’s Agreement to
Withhold
By signing Part IV, you acknowledge that you
will:
• Withhold on the principal portion of each
installment payment.
• Authorize the real estate escrow person to
withhold the required amount only on the
first installment payment.
• Withhold 3 1/3% (.0333) or the Optional
Gain on Sale withholding percentage, as
specified by the seller on Form 593, on
the principal portion of all subsequent
installment payments.
• Give one copy of Form 593 to the seller by
the 20th day of the month following the
month of the installment payments.
• Send each withholding payment, with
Form 593-V, and the completed Form 593
to the FTB by the 20th day of the month
following the month of the installment
payment (you do not need to obtain
seller’s signature on each subsequent and
completed Form 593).
• Promptly inform the FTB if the terms of
the installment sale, promissory note, or
payment schedule change.
Make sure you copy all pages so you will
have the instructions for withholding on
subsequent payments. Give the original, with a
copy of the promissory note, and a completed
Form 593, to your real estate escrow person.
When you make subsequent installment
payments, withhold either 3 1/3% (.0333) of
the total sales price, or Optional Gain on Sale
withholding percentage, as specified by the
seller on Form 593, on the principal portion of
each installment payment. Mail withholding
payments with Form 593-V, and a completed
Form 593 for each withholding payment.
When you send the withholding on the final
installment payment, write “Final Installment
Payment” on the bottom of Form 593.
We update our forms annually. Make certain
you use the most current form. For more
information on withholding on installment
payments, see the instructions for Form 593 or
call Withholding Services and Compliance at
888.792.4900 or 916.845.4900.
Form 593-I Instructions 2010 Page
Real Estate Escrow Person
Instructions
Make a copy of this form for your records. Send
the completed original Form 593-I, a copy of the
promissory note, the seller’s certified Form 593,
and Form 593-V, with the required withholding
amount on the first installment payment to
the FTB. Get Form 593 instructions for more
information.
Interest and Penalties
Interest will be assessed on late withholding
payments and is computed from the due
date to the date paid. If the real estate
escrow person does not notify the buyer of
the withholding requirements in writing, the
penalty is the greater of $500 or 10% of the
required withholding.
If the buyer (after notification) or other
withholding agent does not withhold, the
penalty is the greater of $500 or 10% of the
required withholding.
If the buyer or other withholding agent does
not furnish complete and correct copies of
Form 593 to the seller by the due date, the
penalty is $50 per Form 593. If the failure
is due to an intentional disregard of the
requirement, the penalty is the greater of $100
or 10% of the required withholding.
If the buyer or other withholding agent does
not furnish complete and correct copies of
Form 593 to the FTB by the due date but does
file them within 30 days of the due date, the
penalty is $15 per Form 593. If Form 593 is
filed more than 30 days but less than 180
days after the due date, the penalty is $30 per
Form 593. If Form 593 is filed more than 180
days after the due date, the penalty is $50 per
Form 593. If the failure is due to an intentional
disregard of the requirement, the penalty is
the greater of $100 or 10% of the required
withholding.
Page Form 593-I Instructions 2010
Additional Information
To get withholding forms or publications,
or to speak to a representative, contact our
Withholding Services and Compliance’s
automated telephone service at:
888.792.4900, or
916.845.4900
FAX 916.845.9512
Or write to:
WITHHOLDING SERVICES
AND COMPLIANCE
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-0651
You can download, view, and print California
tax forms and publications at ftb.ca.gov.
Or to get forms by mail write to:
TAX FORMS REQUEST UNIT
FRANCHISE TAX BOARD
PO BOX 307
RANCHO CORDOVA CA 95741-0307
Internet and Telephone Assistance
Website: ftb.ca.gov
Telephone: 800.852.5711 from within the
United States
916.845.6500 from outside the
United States
TTY/TDD: 800.822.6268 for persons with
hearing or speech impairments
Asistencia Por Internet y Teléfono
Sitio web: ftb.ca.gov
Teléfono: 800.852.5711 dentro de los
Estados Unidos
916.845.6500 fuera de los
Estados Unidos
TTY/TDD: 800.822.6268 personas con
discapacidades auditivas y del
habla
