FTB Updates Publication 1016 (Real Estate Withholding Guidelines)
Californ
ia Revenue and Taxation Code Section 18662 and the related regulations require withholding of a 3 1/3% tax at the source from the sale or exchange of California real estate. The California Franchise Tax Board (FTB) has revised FTB Publication 1016, Real Estate Withholding Guidelines. The revised publication, the purpose of which is to provide guidance on the withholding requirements for sales of California real property, covers the following topics:
- General Information (e.g., definitions, a list or real estate withholding forms, what is the real estate withholding requirement, who is subject to it, when is real estate withholding not required);
- Information for Sellers (e.g., exemptions for sellers, how to calculate withholding, seller’s filing requirements, electing out of withholding on installment payments);
- Information for Buyers (e.g., […]
The Franchise Tax Board (FTB) has announced that it is mailing more than 83,000 letters to taxpayers asking them to justify the Head of Household (HOH) filing status claimed on their 2014 tax returns as part of an annual FTB filing status review. HOH filing status is for unmarried taxpayers who care for a child or other relative for more than half of a year and cover more than half of the household’s annual expenses. There are strict rules for determining whether a taxpayer qualifies for HOH filing status (for which the FTB provides an online guide and eligibility test), and taxpayers who are found not to qualify may owe additional taxes. Taxpayers receiving an FTB letter can respond by filling out […]
The Franchise Tax Board issued a press release warning taxpayers to be wary of theft ploys involving scammers attempting to mimic FTB collection agents in order to gain access to taxpayers’ personal information. This is the second warning in the last few months. Read more 
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