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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Problem with 3.3% California With-holding - Partnership Posted by Mark H. on April 03, 2009 at 5:20 PM In Reply to: Re: Problem with 3.3% California With-holding - Partnership posted by Kristine-CA on April 03, 2009 at 5:05 PM Thank you Kristine. My agent got into an argument with me on this - Anyway, I looked up some information. This link makes it clear on who does and does not have to withhold. And it confirms your reply: http://www.ftb.ca.gov/forms/2009/09_593c.pdf : There is no withholding for CA partnerships. The issue here isn't living in the property, the issue is whether you and your partners are CA residents. . It's pretty clear here: : : Does the law require withholding when a partnership sells California real property? : No. Withholding is not required if the title to the property is recorded in the name of a California partnership. However, withholding is required on non-California partnerships. If you are a California partnership, you are required to withhold on nonresident partners. For more information, get FTB Pub. 1017, Resident and Nonresident Withholding Guidelines, at ftb.ca.gov. : : : I got the tapes and noted that one can form a general partnership so as to avoid 3.3% withholding for California taxes. : : I was going to change from a LHTrust to a three person partnership when my agent told me that unless I reside in the property for five years, WE MUST withhold for all partners. : : Does this mean that unless one of us was a resident, our general partnership will not give us immunity from the withholding? : : True? I hope not. : : Mark H. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Thank you Kristine. My agent got into an argument with me on this - : Anyway, I looked up some information. This link makes it clear on who does and does not have to withhold. : And it confirms your reply: : : http://www.ftb.ca.gov/forms/2009/09_593c.pdf : : : There is no withholding for CA partnerships. The issue here isn't living in the property, the issue is whether you and your partners are CA residents. . It's pretty clear here: : : : : Does the law require withholding when a partnership sells California real property? : : No. Withholding is not required if the title to the property is recorded in the name of a California partnership. However, withholding is required on non-California partnerships. If you are a California partnership, you are required to withhold on nonresident partners. For more information, get FTB Pub. 1017, Resident and Nonresident Withholding Guidelines, at ftb.ca.gov. : : : : : I got the tapes and noted that one can form a general partnership so as to avoid 3.3% withholding for California taxes. : : : I was going to change from a LHTrust to a three person partnership when my agent told me that unless I reside in the property for five years, WE MUST withhold for all partners. : : : Does this mean that unless one of us was a resident, our general partnership will not give us immunity from the withholding? : : : True? I hope not. : : : Mark H. [ 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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