California tax on lump sum distribution

TrishaR — Fri, 12 Mar 2021 19:05:47 GMT

Is the payment of taxes on a real estate sale in CA considered a tax on lump sum distribution?

Re: California tax on lump sum distribution

ToddL99 — Sat, 13 Mar 2021 23:38:13 GMT

No, this is a withholding tax, a prepayment of income (or franchise) tax due from sellers on the gain from the sale of California real property. Filing a non-resident or part-year resident CA return to report the gain may result in a partial or total refund of the tax withheld.

CA does this to ensure they collect tax from out-of-state (or former) residents on the sale of CA real estate.California law requires withholding when a person (an individual, business entity, trust, or estate) sells California real property unless the seller qualifies for an exemption.

See FTB Publication 1016 Real Estate Withholding Guidelines for additional information.

topic California tax on lump sum distribution in State tax filing

California tax on lump sum distribution

Re: California tax on lump sum distribution