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., […]
In a recent news release, the IRS announced the opening of a new International Data Exchange Service (IDES) for financial institutions and foreign countries to securely provide information on financial accounts held by U.S. persons. More than 145,000 financial institutions have registered and more than 110 countries have agreed to provide this information to the IRS.