Form 593-E "Real Estate Withholding - Computation of Estimated Gain or Loss" - California

What Is a 593-E Form?

Form 593-E, Real Estate Withholding - Computation of Estimated Gain or Loss, is a California tax form required for all real estate sales or transfers for which you, the seller/ transferor, are claiming an exemption due to a loss or zero gain or if you elect an optional gain on sale withholding amount. The seller/transferor completes this form 593-E for sales closing within the applicable tax year. This form is signed under penalty of perjury. The seller/transferor must keep this form for five years and provide it to the Franchise Tax Board (FTB) upon request.

How to Get a 593-E Form?

California Form 593-E was released by the California Franchise Tax Board. The latest version of the form was issued in 2019. A fillable 593-E Form is available for download through the link below.

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How to Fill Out Form 593-E?

Follow these Form 593-E instructions:

  1. Enter the name, applicable SSN or ITIN tax identification number, and address of seller/ transferor. Enter the subject property address.
  2. Enter the selling price equalling the total amount you will receive for the property. Separately enter all 593-E selling expenses including commissions, advertising fees, legal fees, and loan charges paid by the seller/ transferor.
  3. If you purchased the property, enter the property purchase price. The purchase price includes the down payment and any debt you incurred.
  4. If the seller/ transferor paid points for you when you acquired the property, enter the amount paid by the seller/transferor on your behalf, unless already subtracted.
  5. Enter the amount of depreciation you deducted or could have deducted on your California income tax return for business or investment use of the property under the method of depreciation you chose. Separately include other amounts that decreased your basis, such as casualty and theft loss deductions and energy credits.
  6. Enter any additions or improvements to the property that adds to the value to the property, prolong its useful life, or adapt it to new uses. Separately also enter any other amounts paid for that increase the basis of the property including settlement fees, special assessments, or the cost of restoring damaged property.
  7. Enter suspended passive activity losses that directly relate to the property sold. Other losses such as net operating losses and capital loss carry-forwards cannot be used.
  8. Using instructions on the form, calculate the Estimated Gain or Loss on Sale. If you have a gain, this is your estimated gain on the sale of your property. If you have a zero gain or loss, check the box on the separate Form 593-C. This can only be claimed if the taxpayer has a tax identification number. You will not be subject to withholding on this sale.
  9. Using instructions on the form, calculate the Optional Gain on Sale Withholding Amount. If you elect to use this amount, check the appropriate box, and enter this amount on the separate Form 593.
  10. Using instructions on the form, calculate the Total Sales Price Withholding Amount. If you select this amount, check the appropriate box and enter this amount on the separate Form 593.

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Real Estate Withholding —
TAXABLE YEAR
CALIFORNIA FORM
2019
593-E
Computation of Estimated Gain or Loss
You are required to complete this form if you claim an exemption due to a loss or zero gain or if you elect an optional gain on sale withholding
amount.
Part I – Seller/Transferor Information
Name
SSN or ITIN
-
-
Spouse’s/RDP’s name (if jointly owned)
Spouse’s/RDP’s SSN or ITIN (if jointly owned)
-
-
Address (apt./ste., room, PO box, or PMB no.)
FEIN
CA Corp no.
CA SOS file no.
City (If you have a foreign address, see instructions.)
State
ZIP code
-
Property address (if no street address, provide parcel number and county)
Part II – Computation
1 Selling price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 _______________
2 Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 _______________
3 Amount realized. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 _______________
4 Enter the price you paid to purchase the property (If you acquired the property other than by purchase,
see instructions, How to Figure Your Basis .) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 _______________
5 Seller/Transferor-paid points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 _______________
6 Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 _______________
7 Other decreases to basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 _______________
8 Total decreases to basis . Add line 5 through line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 _______________
9 Subtract line 8 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 _______________
10 Cost of additions and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 _______________
11 Other increases to basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 _______________
12 Total increases to basis . Add line 10 and line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 _______________
13 Adjusted basis. Add line 9 and line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 _______________
14 Enter any suspended passive activity losses from this property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 _______________
15 Add line 13 and line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 ______________
16 Estimated gain or loss on sale. Subtract line 15 from line 3 and enter the amount here . If you have a loss or zero gain, skip lines 17 and 18 .
Complete the Seller/Transferor Signature area below and check the box on Form 593-C, Real Estate Withholding Certificate, Part II line 3 .
If you have a gain, go to line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 ______________
17 Optional gain on sale withholding amount. Check the applicable box for the filing type .
 Individual 12 .3%
 Corporation 8 .84%
 Bank and Financial Corporation 10 .84%
 Non-California Partnership 12 .3%
 S Corporation 13 .8%
 Financial S Corporation 15 .8%
Multiply the amount on line 16 by the tax rate for the filing type selected above and enter the result on line 17 . This is the optional gain on sale withholding amount .
If you elect the optional gain on sale withholding amount on line 17, get Form 593, Real Estate Withholding Tax Statement, and check the appropriate box on line 4
(Boxes B-G) for the Optional Gain on Sale Election, and transfer the amount on line 17 to Form 593, line 5 .
Sign Form 593 to certify the election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 ______________
3
/
18 Total sales price withholding amount. Multiply the selling price on line 1 by
1
% ( .0333) and enter the amount on line 18 .
3
This is the total sales price withholding amount .
If you select the total sales price withholding amount on line 18, check Box A “
3
/
% (.0333) x Total Sales Price” on line 4 of
1
3
Form 593, and transfer the amount on line 18 to Form 593, line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 ______________
Seller/Transferor Signature
Title and escrow persons and exchange accommodators are not authorized to provide legal or accounting advice for purposes of determining withholding amounts.
Transferors are strongly encouraged to consult with a competent tax professional for this purpose.
To learn about your privacy rights, how we may use your information, and the consequences for not providing the requested information, go to ftb.ca.gov/forms and
search for 1131 . To request this notice by mail, call 800 .852 .5711 .
Under penalties of perjury, I declare that I have examined the information on this form, including accompanying schedules and statements, and to the best of my
knowledge and belief, it is true, correct, and complete . I further declare under penalties of perjury that if the facts upon which this form are based change, I will promptly
notify the Real Estate Escrow Person (REEP) .
Seller’s/Transferor’s Name
Seller’s/Transferor’s Signature
Date
It is unlawful to forge
Spouse’s/RDP’s Name (if jointly owned)
a spouse’s/RDP’s
Spouse’s/RDP’s Signature (if jointly owned)
Date
signature .
Form 593-E 2018
7151193
Real Estate Withholding —
TAXABLE YEAR
CALIFORNIA FORM
2019
593-E
Computation of Estimated Gain or Loss
You are required to complete this form if you claim an exemption due to a loss or zero gain or if you elect an optional gain on sale withholding
amount.
Part I – Seller/Transferor Information
Name
SSN or ITIN
-
-
Spouse’s/RDP’s name (if jointly owned)
Spouse’s/RDP’s SSN or ITIN (if jointly owned)
-
-
Address (apt./ste., room, PO box, or PMB no.)
FEIN
CA Corp no.
CA SOS file no.
City (If you have a foreign address, see instructions.)
State
ZIP code
-
Property address (if no street address, provide parcel number and county)
Part II – Computation
1 Selling price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 _______________
2 Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 _______________
3 Amount realized. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 _______________
4 Enter the price you paid to purchase the property (If you acquired the property other than by purchase,
see instructions, How to Figure Your Basis .) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 _______________
5 Seller/Transferor-paid points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 _______________
6 Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 _______________
7 Other decreases to basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 _______________
8 Total decreases to basis . Add line 5 through line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 _______________
9 Subtract line 8 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 _______________
10 Cost of additions and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 _______________
11 Other increases to basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 _______________
12 Total increases to basis . Add line 10 and line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 _______________
13 Adjusted basis. Add line 9 and line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 _______________
14 Enter any suspended passive activity losses from this property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 _______________
15 Add line 13 and line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 ______________
16 Estimated gain or loss on sale. Subtract line 15 from line 3 and enter the amount here . If you have a loss or zero gain, skip lines 17 and 18 .
Complete the Seller/Transferor Signature area below and check the box on Form 593-C, Real Estate Withholding Certificate, Part II line 3 .
If you have a gain, go to line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 ______________
17 Optional gain on sale withholding amount. Check the applicable box for the filing type .
 Individual 12 .3%
 Corporation 8 .84%
 Bank and Financial Corporation 10 .84%
 Non-California Partnership 12 .3%
 S Corporation 13 .8%
 Financial S Corporation 15 .8%
Multiply the amount on line 16 by the tax rate for the filing type selected above and enter the result on line 17 . This is the optional gain on sale withholding amount .
If you elect the optional gain on sale withholding amount on line 17, get Form 593, Real Estate Withholding Tax Statement, and check the appropriate box on line 4
(Boxes B-G) for the Optional Gain on Sale Election, and transfer the amount on line 17 to Form 593, line 5 .
Sign Form 593 to certify the election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 ______________
3
/
18 Total sales price withholding amount. Multiply the selling price on line 1 by
1
% ( .0333) and enter the amount on line 18 .
3
This is the total sales price withholding amount .
If you select the total sales price withholding amount on line 18, check Box A “
3
/
% (.0333) x Total Sales Price” on line 4 of
1
3
Form 593, and transfer the amount on line 18 to Form 593, line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 ______________
Seller/Transferor Signature
Title and escrow persons and exchange accommodators are not authorized to provide legal or accounting advice for purposes of determining withholding amounts.
Transferors are strongly encouraged to consult with a competent tax professional for this purpose.
To learn about your privacy rights, how we may use your information, and the consequences for not providing the requested information, go to ftb.ca.gov/forms and
search for 1131 . To request this notice by mail, call 800 .852 .5711 .
Under penalties of perjury, I declare that I have examined the information on this form, including accompanying schedules and statements, and to the best of my
knowledge and belief, it is true, correct, and complete . I further declare under penalties of perjury that if the facts upon which this form are based change, I will promptly
notify the Real Estate Escrow Person (REEP) .
Seller’s/Transferor’s Name
Seller’s/Transferor’s Signature
Date
It is unlawful to forge
Spouse’s/RDP’s Name (if jointly owned)
a spouse’s/RDP’s
Spouse’s/RDP’s Signature (if jointly owned)
Date
signature .
Form 593-E 2018
7151193