How to fill in missing CA FTB form 592-B for sale of rental property by CA non-resident

[23bambam23]

Non-California resident here who sold a single family rental house in California last year.  I have not received a Form 592-B Withholding Tax statement from the title company--requested it twice but they keep sending me the 593 voucher, which doesn't have the info I need to complete the 592B in TT.

While I was a CA non-resident all year, I did work part of the year remotely for a California company so had additional CA income besides the house sale.

I'm trying to fill in the blanks for the missing form in Turbotax and the FTB instructions are woefully sparse, so I have the following questions:

1.  For the Type of Income Subject to Withholding, do I check the box for Distribution to Domestic (U.S.) Nonresident Partner...etc., or the box for Elective Withholding? The house was just held in my name and my spouse, it was not an S Corp or anything like that.

2.  Under the Tax Withheld section, the first line is Total Income Subject to Withholding....should I enter:

--my total taxable income from line 19 of form 540 NR

--or the gross sales price of the house

--or my total gain from Schedule D

--or something else?

3. The amount I should enter for the Total Resident and/or Nonresident Tax Withheld is the 3.33% of the sales price that was withheld from the house sale, not the Total Tax Payments on line 88 of 540 NR, correct?

Thanks!

[DaveF1006 · Accepted solution]

Yes, let's address these individually.

1. 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. 
2. 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. 
3. 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.

[23bambam23]

Thank you for answering my questions Dave!