InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Simple as pie... Posted by Ward-CA- on November 10, 2003 at 7:50 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. Well, it's as simple as making sure the multiple members are not all reporting their income on the same tax return, and the entity is registered with the State of CA prior to opening escrow. #2. See the requirements as stated in #1. #3. You have to make a formal application for the overpayment and then you'll receive it whenever CA feels good and ready to pay it to you. I'm guessing that'll be a lot later than next April. Hope this helps. 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. Well, it's as simple as making sure the multiple members are not all reporting their income on the same tax return, and the entity is registered with the State of CA prior to opening escrow. : #2. See the requirements as stated in #1. : #3. You have to make a formal application for the overpayment and then you'll receive it whenever CA feels good and ready to pay it to you. I'm guessing that'll be a lot later than next April. : : Hope this helps. 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

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-2003, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455