California Form 593
California's real estate withholding form. Escrow uses it on almost every sale to figure out how much state tax to hold back.
What it is
Form 593 is the California Franchise Tax Board's Real Estate Withholding Statement. When California property is sold, the state may require part of the sale price to be held back for state income tax. The form shows whether withholding applies, or which exemption the seller qualifies for.
When it's used
- On nearly every California real estate sale
- Prepared during escrow, before closing
- Copies go to the seller for their tax records
What's on it
- The seller's and the property's information
- Which exemption applies, if any, such as selling a main home
- The amount withheld, if withholding applies
- Signatures and the escrow company's details
Tips and common mistakes
- Many sellers qualify for an exemption, like selling the home they lived in
- Sellers should give escrow their information early so closing isn't delayed
- Sellers should talk to their own tax advisor about their situation
- Keep the completed copy for tax time
How your Akoni VA handles it
Your VA reminds the seller to send their information to escrow on time and checks that the form is done before the closing date.
This page is general information to help agents and clients understand the form. It is not legal or tax advice. Forms and rules vary by state and change over time, so always use your brokerage's current version and check with a qualified professional.