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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Easy solution...switch ownership into a general partnership... Posted by Ward-CA- on April 24, 2008 at 4:50 PM In Reply to: California THT Real Estate withholding posted by Rob on April 24, 2008 at 1:16 PM Rob, The Franchise Tax Board (FTB) considers the trust entity to be the owner of the property, not the beneficiary of the trust. And as you know, trusts don’t qualify as one of the exempt entities that don’t have to pay the advance withholding. But if you simply deed the property out of the trust and into a general partnership entity before you close escrow, you will qualify as an exempt entity that does not have to pay any advance withholding. Hope this helps, -------Ward ============== : Is there an exemption to the withholding for the gain if the bene is a CA corp? It is a pass through trust with the same EIN as the corp. I know I have closed these in the past with the exemption, but this escrow officer is telling me otherwise. Anyone know the Franchise Tax Board ruling on this? Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Rob, : The Franchise Tax Board (FTB) considers the trust entity to be the owner of the property, not the beneficiary of the trust. And as you know, trusts don’t qualify as one of the exempt entities that don’t have to pay the advance withholding. : But if you simply deed the property out of the trust and into a general partnership entity before you close escrow, you will qualify as an exempt entity that does not have to pay any advance withholding. : : Hope this helps, : : -------Ward : ============== : : Is there an exemption to the withholding for the gain if the bene is a CA corp? It is a pass through trust with the same EIN as the corp. I know I have closed these in the past with the exemption, but this escrow officer is telling me otherwise. Anyone know the Franchise Tax Board ruling on this? [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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