FTB Updates Publication 1016 (Real Estate Withholding Guidelines)

California 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., […]

FTB to Review Head of Household Filing Status for 83,000 Taxpayers

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 […]

By |November 3rd, 2015|Categories: Franchise Tax Board, Individual Tax|Tags: , , , , , , , |Comments Off on FTB to Review Head of Household Filing Status for 83,000 Taxpayers

FTB Warns Taxpayers of New Tax Scams

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 here.

By |May 6th, 2014|Categories: Business Operations, Business Tax, Individual Tax, Nonprofit Organizations|Tags: , , , , |Comments Off on FTB Warns Taxpayers of New Tax Scams

California New Employment Credit Information

The Enterprise Zone Hiring Credit was replaced by the New Employment Credit effective January 1, 2014. To obtain a credit, a qualified taxpayer must hire a qualified full-time employee on or after January 1, 2014 and pay qualified wages attributable to work performed by the qualified full-time employee in a Designated Geographic Area (DGA). In addition, the qualified taxpayer must receive a Tentative Credit Reservation (TCR) from the Franchise Tax Board (within 30 days of complying with the EDD new hire reporting requirement) for that qualified full-time employee, and they must certify each qualified employee on an annual basis going forward. On top of all this, the Governor just announced that qualified taxpayers located inside […]

By |May 5th, 2014|Categories: Business Operations, Business Tax|Tags: , , , , , , |Comments Off on California New Employment Credit Information

California New Jobs Credit update

The Franchise Tax Board (FTB) has announced that as of December 29, 2012, $138,439,924 in total New Jobs Credit was generated on personal income tax and business entity tax returns filed and processed. The credit available to be claimed by all taxpayers is capped at $400,000,000. A tax credit of $3,000 per additional full-time employee hired is allowed for qualified small businesses with 20 or fewer employees.

By |May 7th, 2013|Categories: Business Tax|Tags: , , , , |Comments Off on California New Jobs Credit update
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