# Instructions for Form 593

## California Tax Form 593ins: Instructions for Form 593

Use the California Tax Form Calculator California Tax Form 593ins: Instructions for Form 593 as a stand alone tax form calculator to quickly calculate specific amounts for your 2024 California state tax return.

 Withholding Calculation Using Total Sales Price Method Conventional Sale/Transfer: a. Total Sales Price \$ b. Enter the seller’s/transferor's ownership percentage \$ c. Amount Subject to Withholding. Multiply line a by line b and enter the result \$ d. Withholding Amount. Multiply line c by 3 1/3% (0.0333) and enter the result here and on Form 593, line 5 \$ Installment Sale: a. Amount Subject to Withholding. If you are withholding on the down payment in escrow, enter the required amount of the down payment.If you are withholding on installment payments received after the close of the real estate transaction or the final payoff in escrow, enter the principal portion of the payment \$ b. Withholding Amount. Multiply line a by 3 1/3% (0.0333) and enter the result here and on Form 593, line 5 \$ Exchange: a. Amount Subject to Withholding. For completed deferred exchanges, enter the amount of boot (cash or cash equivalent) received by the seller/transferor \$ b. Withholding Amount. Multiply line a by 3 1/3% (0.0333) and enter the result here and on Form 593, line 5 \$ Failed Exchange: a. Total Sales Price. If a deferred exchange is not completed or does not meet the deferred requirements, enter the total sales price \$ b. Ownership Percentage. If multiple sellers/transferors attempted to exchange this property, enter this seller’s/transferor's ownership percentage. Otherwise, enter 100% \$ c. Amount Subject to Withholding. Multiply line a by line b \$ d. Withholding Amount. Multiply line c by 3 1/3% (0.0333) and enter the result here and on Form 593, line 5 \$ Withholding Calculation Using Optional Gain on Sale Election Conventional Sale/Transfer: Enter the amount from Form 593-E, Real Estate Withholding – Computation of Estimated Gain or Loss, line 17 on Form 593, line 5Trusts (Grantor and Non-grantor): Check box 4B on Part III of Form 593 and use the trust's highest tax rate, which corresponds to the individual tax rate.Installment Sale: The optional gain on sale withholding amount for an installment sale is calculated in two steps. Step 1: Calculate the installment sale withholding percent that will be applied to all installment payments, including any deposits, down payments, or amounts paid for the seller/transferor received during escrow: a. Gain on sale from Form 593-E, line 16(estimated gain on sale) \$ b. Selling price from Form 593-E, line 1(total sale price) \$ c. Installment sale withholding percent, divide line a by line b \$ Step 2: Calculate the optional gain on sale withholding amount: a. Installment payment or down payment \$ b. Multiply line a by installment sale withholding percent calculated in Step 1 \$ c. Withholding amount, multiply line b by the applicable tax rate* for your filing type \$ When withholding on the principal portion of each installment payment using the Optional Gain on Sale Election, the seller/transferor must provide the buyer/transferee with the Installment Sale Withholding percent to include on Form 593-I.Send the original Form 593, the required withholding payment on the down payment, and a copy of the promissory note to the FTB. Do not attach a copy of the promissory note with withholding on installment payments sent in after the close of the real estate transaction. Exchange: a. Boot Amount. Not to exceed recognized gain \$ b. Withholding Amount. Multiply line a by the applicable tax rate* and enter the result here and on Form 593, line 5 \$ Failed Exchange: a. Gain on Sale from Form 593-E, line 16 \$ b. Ownership Percentage. If multiple sellers/transferors attempted to exchange this property, enter this seller’s/transferor's ownership percentage. Otherwise, enter 100% \$ c. Amount Subject to Withholding. Multiply line a by line b \$ d. Withholding Amount. Multiply line c by the applicable tax rate* and enter the result here and on Form 593, line 5 \$

Follow us on Facebook to be informed of the latest updates to the US Tax Form Calculator and our popular Tax and Finance Calculators.