California 3.3% Withholding

In reading the FTB publication 'Real Estate Withholding Guidelines' (https://www.ftb.ca.gov/forms/misc/1016.pdf), FAQ 68-71 seems to be saying if title is held in a grantor trust, the trust is disregarded and the seller for withholding purposes is considered to be the grantor. Am I correct in assuming that if the grantor is a S-Corp (or any other exempted entity) that no withholding is required?

If so, what if I partner with other investors all of us beneficiaries in a THT, do they all have to be grantor's to qualify for the withholding exemption?



Edited 1 time(s). Last edit at 02/09/2015 08:38AM by DaveSoCal.