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!

Ever end a crazy, non-stop day, but can’t recall what you actually accomplished? You’re not alone! It’s a common challenge. Today, we wanted to share with you a productivity tip in hopes of helping you work smarter, not just harder.

Time blocking is a concept that might help.  

What is time blocking?

  • Assign tasks (and down time) to specific blocks of time.

  • We recommend blocking the time in whatever calendar you use for calls and appointments – that way you don’t double book.

Why time block?

Helps set you free of distractions and procrastination to actually get things done!

So, at this point, you might like the sound of this but are wondering how to start implementing this into your daily routine.

First off, be realistic. You’re one person, and there are only so many hours in the day.

Set aside time to actually plan

We get caught up with doing instead of planning, but planning allows us to see the big picture, prioritize and set realistic expectations.

  • Instead of saying I will reach out to 50 past clients today over a two-hour window, set a goal to reach out to 10 in a two-hour window.

Allocate time to be reactive

‘Emergencies’ happen no matter how well you plan. Block out time each day for this so that your other goals don’t go unaccomplished.

  • Set 30-minute blocks every two hours. If there are no ‘fires,’ great! You can move onto your next task.

Audit yourself

Having a record of what you planned to do and what you actually did do is invaluable.

  • At the end of each day, see if certain tasks took longer than anticipated and adjust the days ahead accordingly.

Set time aside for breaks

It’s easy to get sucked into skipping lunch or even a workout. But, ‘down time’ can actually increase productivity.

  • If the traditional 12-1pm is an unrealistic time to break away, that’s perfectly okay. Set aside 30-minutes between 10-10:30am and 2:45-3:15pm to breathe, eat or get outside!

Click here to view a sample time blocking calendar.

We hope you found this information helpful. Cheers to getting more done – effectively and efficiently – in a day!

Today, we’re excited to introduce you to Muriel!! She’s a Branch Manager and Escrow Officer at our CV Escrow office in Rancho Mirage.

Although she’s been with our company for less than a year, she has been working in escrow for over three decades and already made a great deal of significant contributions to our team, clients and organization as a whole.

Muriel’s passion for helping clients and skill for making the escrow process as seamless as possible is evident each and every day, so we’re beyond grateful to have her on our team.

Meet Muriel!

What is your favorite thing about working at the company?

The company values are stated and lived out

Tell us what a typical day at work for you entails.

Opening escrows, closing escrows, and working out all file challenges.  Phone calls and emails galore.  

What motivates you?

Helping move an escrow to a successful close, making buyers and sellers happy throughout the process.

How long have you been in the industry?

30 years

What is the one thing you can’t resist?

Chocolate

What’s the best book you’ve ever read?

Gone With the Wind

If you had to eat one meal every day for the rest of your life, what would it be?

Dinner

If you could do another job for just one day, what would it be?

An Actress

What’s one item on your bucket list that you can’t wait to check off?

Seeing Niagara Falls


Muriel, thank you for all that you do for our team and clients. We all appreciate your dedication our mission and the fact that you make the escrow process a smooth and happy one for all of the clients you work with. Thank you!

Dana is an Escrow Officer at our CV Escrow office in Palm Springs. She has been with our team for one year, and in the industry for over 30 years. She has an immense amount of escrow knowledge and brings an immense amount of positive energy to our team.

On a daily basis, Dana works diligently to serve our clients and their unique needs, and her genuine desire to help in whatever way she can is evident to everyone she works with!

Meet Dana!

What is your favorite thing about working at the company?

The positive and upbeat work environment.

Tell us what a typical day at work for you entails.

Replying to e-mail requests, taking phone calls, opening escrows, sending lender requested items,  appointments with buyers and sellers to go over and notarize paperwork, working up loan documents, packaging loan documents, preparing BIA paperwork, preparing title recording documents, balancing out a closing and sending closing packages.

What motivates you?

I enjoy assisting in a real estate transaction. I am very customer service oriented, and I like to provide guidance and assistance whenever I can.

How long have you been in the industry?

30 years

What is the one thing you can’t resist?

Line dancing

What’s the best book you’ve ever read?

Any book by Sidney Sheldon.

If you had to eat one meal every day for the rest of your life, what would it be?

Benihana steak and shrimp

If you could do another job for just one day, what would it be and why?

A country music singer.

What’s one item on your bucket list that you can’t wait to check off?

A cruise to Alaska.


Dana, thank you so much for everything that you do for our team and clients. We are beyond grateful for you, your dedication to our clients and your positive energy. We look forward to many more years together!

Today, we are excited to introduce you to Julie Ekstrom. She’s a Manager and Escrow Officer at our CV Escrow office in Palm Springs and has been with us for nearly a decade.

Julie has played a pivotal role in the success of the office due to her positive energy and genuine passion for helping other team members and clients. Her desire to ensure clients are beyond pleased with their experience is just one reason we are so grateful for Julie.

Meet Julie!

What is your favorite thing about working at the company?

The people I work with and work for.

 

Tell us what a typical day at work for you entails.

A lot of hard work – and everything won’t fit on this short line

What motivates you?

Seeing people happy at their jobs and clients happy with the work that we do.

How long have you been in the industry?

38 years

What is the one thing you can’t resist?

Popcorn

What’s the best book you’ve ever read?

The Beach House by James Patterson

If you had to eat one meal every day for the rest of your life, what would it be?

Chile Rellenos, tacos, chips and salsa, rice and beans (shall I keep going?)

If you could do another job for just one day, what would it be and why?

Any job that would surround me with dogs.

What’s one item on your bucket list that you can’t wait to check off?

I don’t have a bucket list – I live in the moment.

Julie, on behalf of everyone at Pango Group, we want to thank you for everything you do for our team and clients on a daily basis. We are so grateful for you and look forward to many more years together!

Monique is an Escrow Officer at our CV Escrow office in Rancho Mirage and has been with us for four awesome years.

We’re extremely thankful for Monique given the positive impact on all of those she works with and has ensured that our clients are taken care of through every step of the escrow process!

Meet Monique!

 

 

 

What is your favorite thing about working at the company?

Working with my clients and the customers.

Tell us what a typical day at work for you entails.

My typical day entails phone calls and emails from agents, buyers and sellers. Fundings, closings, HOA and BIA processing and opening escrows.

What motivates you?

My family

How long have you been in the industry?

12 years

What is the one thing you can’t resist?

Any opportunity to please my family

What’s the best book you’ve ever read?

The Long Road Home by Danielle Steele

If you had to eat one meal every day for the rest of your life, what would it be?

Tacos, rice and beans

If you could do another job for just one day, what would it be and why?

I love working with children, so I would love trying to be a Kindergarten teacher.

What’s one item on your bucket list that you can’t wait to check off?

Going to Rome with my husband and kids


Thank you, Monique, for four years of dedication, caring for our clients and being so passionate about what you do! We look forward to many more years.

 

Meet Gina! She’s an Escrow Officer at CV Escrow and has been doing awesome work for our clients for over six years!

On a daily basis, Gina works hard to ensure that our clients have a remarkable (and stress-free) experience throughout their escrow process.

Her ability to overcome even the most challenging circumstances in an escrow truly is truly amazing, so we’re extremely grateful for her and all that she does.

What is your favorite thing about working at the company?

I love helping clients and the people I work with.

Tell us what a typical day at work for you entails.

Escrow. Escrow. Escrow.

What motivates you?

The challenge to get things done that agents think can’t be done.

How long have you been in the industry?

28 years

What is the one thing you can’t resist?

Food!

What’s the best book you’ve ever read?

The Bible

If you had to eat one meal every day for the rest of your life, what would it be?

Fried zucchini

If you could do another job for just one day, what would it be and why?

I would work at my kid’s school.

What’s one item on your bucket list that you can’t wait to check off?

A cruise.

Gina, on behalf of everyone in the Pango Group family, we wanted to thank you for your continuous motivation, dedication and hard work. You’ll contribution to our organization is greatly appreciated!

Check out our latest video to help people understand what goes on in an escrow!

We are thrilled to announce new Business Development Representative, Julie Brockman to our CV Escrow team! Julie can be reached at 760-883-0821 or jbrockman@cvescrow.com for all of your escrow needs!

The Foreign Investment in Property Tax Act (FIRPTA) is a certificate of non-foreign status. FIRPTA addresses the disposition of U.S. real property interest by a foreign person. Section 1445 of the Internal Revenue Code requires that all transferees (buyers) of real property owned by a foreign person withhold and pay to the IRS up to 15% of the amount realized on the sale.

When dealing with a foreign seller, at the very beginning, agents should be confirming if the seller is a foreign seller or not. If he is a foreign seller (non-resident alien) and does not have an individual tax payer identification number (ITIN), then the agent should recommend he seek the assistance of his CPA in order to apply to the IRS for his ITIN and help him through the paperwork.

Who is a non-resident alien? A non-U.S. citizen who does not pass the green card test or the substantial presence test is considered a “non-resident alien.” If a non-citizen currently has a valid green card, he would pass the green card test and would be classified as a resident alien.
U.S. Real property interests include: Interest in a parcel or parcels of real property.

The IRS definition of an agent: Any person who represents the transferor (seller) or transferee (buyer) in any negotiation with another person (or another person’s agent relating to the transaction in the settling of the transaction).

Liability of agents: If the transferee (buyer) or other withholding agent receives a certification of non-foreign status and the agent knows that the document is false, the agent must provide notice to the transferee (buyer) or other withholding agent. If the notice is not provided, the agent will be liable for the tax that should have been withheld but only to the extent of the agent’s compensation from the transaction.

 

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