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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Avoid the 3.3% California witholding tax. Posted by zachary on November 10, 2003 at 7:43 AM In Reply to: Avoid the 3.3% California witholding tax. posted by Sara_CA on November 10, 2003 at 0:03 AM : I am trying to avoid the 3.3% California witholding tax for the sell of my second home/investment. The easiest way I think I know how is to deed the house to multiple owners." I, Sara Lung, hereby grant the property located at ---- to Sara Lung, George Lung, and Thomas Lung, as tennant in common." Then sell the house from this multiple owners to the new buyer. : 1. Will this avoid the 3.3% Cali tax? Is it realy this simple? : 2. I have already opened escrow with the new buyer. Is it too late? Can I still deed the property to multiple owners and then at the close of escrow deed the property to the new buyer ? : 3. The 3.3% Cali tax is a "withholding tax", right? Does it mean I get the money back next April? In this transaction the 3.3% amounts to about $20K. My income is not high this year. Definitely, my California state personal income tax next April will be much less than ($20K + state withholdings from my job). : Do I get the money back? Is there something I am not understanding here? : Any and all insight/comments/suggestions/advice is greatly appreciated. -------------------------------------------------------- Sara, 1. No, this will not avoid the witholding tax. 3.3% of the total sales price will still go to the state 2. Its not to late...but your idea will not work. I just started a corporation (exempt from the witholding) and it was not setup until 1/2 thru escrow on a preforeclsoure I'm doing. I wrote an addendum to the purchase contract that I have with the buyers saying that prior to the close of escrow I will deed the property to the corp. and then the corp. will deed it to the bueyrs. when I signed paperwork at the title co. they had me sign a deed to the corp then a deed from the corp to the buyers. this will avoid the witholding tax. 3. yes it is a witholding tax. you will get back any amount over what you owe to the state. they are basically borrowing your money interest free until tax returns.... zachary Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I am trying to avoid the 3.3% California witholding tax for the sell of my second home/investment. The easiest way I think I know how is to deed the house to multiple owners." I, Sara Lung, hereby grant the property located at ---- to Sara Lung, George Lung, and Thomas Lung, as tennant in common." Then sell the house from this multiple owners to the new buyer. : : 1. Will this avoid the 3.3% Cali tax? Is it realy this simple? : : 2. I have already opened escrow with the new buyer. Is it too late? Can I still deed the property to multiple owners and then at the close of escrow deed the property to the new buyer ? : : 3. The 3.3% Cali tax is a "withholding tax", right? Does it mean I get the money back next April? In this transaction the 3.3% amounts to about $20K. My income is not high this year. Definitely, my California state personal income tax next April will be much less than ($20K + state withholdings from my job). : : Do I get the money back? Is there something I am not understanding here? : : Any and all insight/comments/suggestions/advice is greatly appreciated. : : -------------------------------------------------------- : Sara, : 1. No, this will not avoid the witholding tax. 3.3% of the total sales price will still go to the state : 2. Its not to late...but your idea will not work. I just started a corporation (exempt from the witholding) and it was not setup until 1/2 thru escrow on a preforeclsoure I'm doing. : I wrote an addendum to the purchase contract that I have with the buyers saying that prior to the close of escrow I will deed the property to the corp. and then the corp. will deed it to the bueyrs. when I signed paperwork at the title co. they had me sign a deed to the corp then a deed from the corp to the buyers. : this will avoid the witholding tax. : 3. yes it is a witholding tax. you will get back any amount over what you owe to the state. they are basically borrowing your money interest free until tax returns.... : zachary Optional Link URL: Link Title: Optional Image URL: [ 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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