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Entering California real estate withholding on individual Form 540 in ProConnect

SOLVED•by Intuit•5•Updated almost 2 years ago

This article will assist you with entering the California real estate withholding reported on Form 593 to print on the individual return Form 540, line 73 in Intuit ProConnect.

Inputs for CA Form 593, Real Estate Withholding, are located in two places in the Individual module of ProConnect:

  • The California Withholding screen
    • This is for general entries that aren't related to dispositions entered on the Dispositions screen.
  • The Dispositions screen
    • This is for amounts reported from a disposition.

Follow these steps to enter the information on the California Withholding screen:

  1. Go to the Input Return tab.
  2. From the left of the screen, select State & Local and choose Part-Yr./Nonres. Information.
  3. Select CA Non-res/Real Estate WH.
  4. Locate the General Information section.
  5. Enter a 1 or 2 in the 1=592-B, 2=593 field to indicate which form you're reporting.
  6. Scroll down to the appropriate section and enter the details for the form indicated.

Follow these steps to enter the amount on the Dispositions screen:

  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Dispositions (Sch D, etc.).
  3. Select Dispositions (Schedule D, 4797, etc.).
  4. Enter the sale information to report on Form 4797 or Schedule D.
  5. Click the blue Details button to expand the input screen.
  6. Click the three dots at the top of the screen and choose State & Local.
  7. Locate the CA Real Estate Withholding (Form 593) section.
  8. Enter the amount reported on Form 593, box 5 in the Amount withheld from seller field.
 

Form 593 won't be generated with the individual return. These inputs will create an electronic copy of the form to be included in the e-filed return. If this return must be paper filed, include a copy of the original 593 received by the taxpayer.

The following diagnostic is generating in the program:

e-file: Form 593 Item #X: Form 593 requires a withholding agent first name, last name and social security number. For a business, enter the business name and either FEIN or CA Corporation number. If none of the above ID numbers apply, use "Applied For" or "Foreign Non-US" to meet electronic filing requirements. (ref. #16387)

You can resolve this diagnostic using either:

  • The Dispositions screen, or
  • The Part-Year/Nonres Info screen
    • Only use this screen if you aren't interesting duplicate information on the Dispositions screen.
 

Don't enter both the individual and the business information.

Follow these steps to resolve the diagnostic using the Dispositions screen:

  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Dispositions (Sch D, etc.).
  3. Select Dispositions (Schedule D, 4797, etc.).
  4. Select the applicable property from the tabs at the top of the screen.
  5. Scroll down to the CA Real Estate Withholding (Form 593) section.
    • To enter an individual as the withholding agent:
      • Enter the First name.
      • Enter the Last name.
      • Enter the Social security number of the withholding agent.
      • Enter the Address.
      • Enter the City.
      • Select the State from the dropdown menu.
      • Enter the ZIP code.
      • Enter the Daytime telephone number.
    • To enter a business as the withholding agent:
      • Enter the Business name.
      • Enter the Federal ID number
      • Enter the California corporation number.
      • Enter the Address.
      • Enter the City.
      • Select the State from the drop down menu.
      • Enter the ZIP code.
      • Enter Daytime telephone number.

Follow these steps to resolve this diagnosic on the Part-Year/Nonres Information screen:

  1. Go to the Input Return tab.
  2. From the left of the screen, select State & Local and choose Part-Year/Nonres Info.
  3. Select CA Non-res/Real Estate WH.
  4. Locate the Withholding Agent section.
    • To enter an individual as the withholding agent:
      • Enter the First name.
      • Enter the Last name.
      • Enter the Social security number of the withholding agent.
      • Enter the Address.
      • Enter the City.
      • Select the State from the dropdown menu.
      • Enter the ZIP code.
      • Enter the Daytime telephone number.
    • To enter a business as the withholding agent:
      • Enter the Business name.
      • Enter the Federal ID number.
      • Enter the California corporation number. 
        • If the Federal ID number or CA ID isn't available, enter a 1 or 2 in Federal or CA ID not available: 1= applied for, 2= foreign non-U.S.
      • Enter the Address.
      • Enter the City.
      • Select the State from the dropdown menu.
      • Enter the ZIP code.
      • Enter Daytime telephone number.

This article will help resolve the following diagnostic:

  • e-file: California Form 593 requires the 593 preparer's name, escrow company and telephone number for electronic filing. (ref. #16394)

This diagnostic for California Form 593 is usually caused by incomplete information on the Dispositions screen or the Part-Year/Nonres Info screen.

To review the Dispositions screen:

  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Dispositions (Sch D, etc.).
  3. Select Dispositions (Schedule D, 4797, etc.).
  4. Select the appropriate transaction.
  5. Make sure that all information listed on the diagnostic is either complete or blank.

To review the Part-Year/Nonres Info screen:

  1. Go to the Input Return tab.
  2. From the left of the screen, select State & Local and choose Part-Yr./Nonres. Information.
  3. Select CA Non-res/Real Estate WH.
  4. Make sure that all information listed on the diagnostic is either complete or blank.

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