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Clients are Saying

This was a difficult and emotional experience for me and Lorraine was absolutely amazing. Selling a home where you have experienced many of the significant milestones of your life is difficult and dealing with the intricacies of doing so while complying with the provisions of a trust is complex so it was wonderful to have Lorraine’s expertise and guidance through the process.

—Judy T.
Lorraine's Blog
 
When did withholding start for California residents?
The withholding law applies to dispositions of California real estate by both residents and non-residents which close on and after January 1, 2003. Previously, withholding was only required of non-resident sellers.


Why was this withholding law enacted?
As part of attempting to balance the state budget, this withholding provision was added to legislation on the last day of the Legislative session in 2002. It was estimated to accelerate collection of $285 million in additional state revenue.


Who is responsible for withholding?
The law requires the buyer (called the transferee) to withhold from what would otherwise be paid to the seller.


What unit at the Franchise Tax Board handles the withholding?
The Withholding Services and Compliance Section handles the withholding. Phone number is (888) 792-4900 and information can be found on their website at: https://www.ftb.ca.gov/forms/2012/12 1016.pdf

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