Yes, let's address these individually.
- Type of Income Subject to Withholding – Since the house was held in your name and your spouse’s name (not an S Corp or partnership), you need to check the box for Elective Withholding rather than the Distribution to Domestic Nonresident Partner option. The latter applies more to partnerships and pass-through entities.
- California usually withholds on the total income from real estate transactions. This isn't the amount of money you owe or the amount of money you make from Schedule D. However, if you qualify for an alternative withholding calculation, you may be able to use the total gain instead.
- Total Resident and/or Nonresident Tax Withheld – Yes, the amount you enter should be the 3.33% of the sales price that was withheld from the house sale, not the Total Tax Payments on line 88 of Form 540NR.
For additional questions, refer to California FTB publication 1017.
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