Many of us have a love-hate relationship with email. We know that we need it to be successful in our jobs and it can make communication more efficient, but we also know that it can be a huge time suck.

But, how do you manage your Inbox so that you’re optimizing the benefits and diminishing the downfalls?

There may be some trial and error involved to find the best fit for your needs, but we’ve found some tools and processes that are guaranteed to make your Inbox a more peaceful and productive place.

Unsubscribe from email clutter 

Manually unsubscribing from emails you’ve subscribed to over the years it exhausting!  Enter This service allows you to mass unsubscribe from everything you don’t read, so it’s a huge time saver and will eliminate junk in your inbox.

Schedule Email Reminders

Another tool that we love is FollowUpThen. Remind yourself, your clients or team to follow-up on specific emails. There are a ton of options and it works with all email services. The first 50 follow-ups each month are free too!

Create Your Own Rules

IFTTT (If This Then That) is a wonderful productivity tool that uses ‘recipes’ to create rules. There are a lot of pre-made recipes, but you can create a recipe for virtually anything! Here are a few we like:

  • Get a text message when a particular person emails you.
  • Send all email attachments to a specific folder in Dropbox based on sender.
  • Turn emails into a task in your project management system.

While there’s a bit of configuration required on the front-end, the time you’ll save in the months ahead, make it worth the investment!

Cheers to a happier and healthier Inbox! And, as always, we’re here to help, so please get in touch if we can help with any of your escrow needs. 

California requires that income tax for the sale of a home sale must be withheld.

Today, we’ll share with you more information about this form, why it’s important and key information you’ll want to know about before completing it. 

So, let’s get started!

What is the 593-C Form?

  • Seller fills out the State of California Real Estate Withholding Certificate (593-C).
  • Escrow provides this form to the seller, typically when the escrow instructions have been prepared and sent out for signatures.

How to Complete the 593-C Form

  • The standard amount of taxes to withhold is equal to 3 1/3% of the total sales price.
  • If the seller claims an exemption by filling out the 593-E form, the percentages will be different if it is reduced withholding. These are reflected on the form itself.
  • If the seller is an individual, enter the social security number (SSN) or individual taxpayer identification number (ITIN) as indicated on the 593-C form.
  • If the sellers are spouses/registered domestic partners (RDPs) and plan to file a joint return, enter the name and SSN or ITIN for the spouse/RDP on the 593-C form in the space provided.
  • If there is more than one seller and the sellers are not married/RDPs, then each seller must complete their own 593-C form.

What Entities May Be Considered “Individuals” by the Franchise Tax Board?

  1. Single Member LLC
    If the seller is a single member disregarded LLC, enter the name and the tax identification number of the single member.

  2. Grantor Trust
    • Created when the trust is formed by the grantor(s), and the grantor(s) are also the trustee(s) of the trust.
    • One example is a Family Trust. The grantor trust is disregarded for tax purposes, and the individual seller must report the sale and claim the withholding on individual tax returns.
    • If the trust was a grantor trust that became irrevocable upon the grantor’s death, enter the name of the trust and the trust’s federal employer identification number (FEIN) on Form 593-C. Do not enter the decedent’s name or trustee’s name or SSN.

What Are Exceptions to Withholding?

Certain real estate transactions are exceptions to state income tax withholding, including:

  • Total sales price is $100,000.00 or less.
  • The property is being foreclosed upon pursuant to a power of sale under a deed of trust, or sold by a deed in lieu of foreclosure.
  • The transferor is a bank acting as a trustee other than a trustee of a deed of trust. 
  • The seller certifies to an exemption.

What Are Exemptions to Withholding?

There are a number of exemptions.

  1. The most common exemption is the seller’s principal residence as set forth under Internal Revenue Code (IRC) Section 121.Typically, the seller must have owned and lived in the property as their primary residence for at least two years during the five-year period ending on the sale of sale.
  2. Another is a loss or zero gain. Claiming this exemption will require form number 593-E to be filled out and signed by the seller.

If any of the first three Exceptions to Withholdings apply, the seller will check that exception on the 593-C form and then sign it.  If the seller checks number 4 on the 593-C form, claiming an exemption, there is an additional form which will need to be filled out.

The California Franchise Tax Board website has provided more information with a complete list of exemptions, as well as forms 593-C and 593-E. It is always important for the seller to check with their tax advisor when filling out the 593-C and it is even more important if the seller is filling out a 593-E exemption form.

We hope that you found this article helpful! Of course, if you have any questions about Form 593-C or need any type of assistance with an escrow, please contact us. We are here to help!

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