California Franchise Tax Board Form 593

The IRS’s 1031 Exchange policy has prompted many real estate investors to take advantage of this tool in order to save in capital gains taxes on the sale of their investment properties. When owners leverage this strategy, it is important to file Form 593 in order to register their tax withholding with the IRS.

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What is a 593 Form?

The California Franchise Tax Board explains: “Withholding is required when California real estate is sold or transferred. The real estate escrow person (REEP) is required to notify buyers of withholding requirements, unless the buyer is a QI in a deferred exchange.”

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Exceptions to Form 593

Real estate withholding  may not berequired in the case that any of the following apply:

• The sale price is $100,000 or less.
• The property is in foreclosure.
• The transferor is a bank acting as a trustee (except for a deed of trust).
• The seller or transferor certifies to an exemption on Form 593, Part III.

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View California FTB From 593 for 2024

You can view and download CA FTB Form 593 here.

You can view the 2024 Instructions for completing Form 593 here.

For more information on this, directs investors to read their publication FTB Publication 2016: Real Estate Withholding Guidelines.

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