Beginning January 1st, 2010 the Franchise Tax Board will be requiring residential property managers to withhold 7% of nonresident owner’s rental income. You may qualify for an exemption if you meet the FTB residency requirements. A resident is defined in the instructions for Form 590. This form can be found online at:
http://www.ftb.ca.gov/forms/2009/09_590.pdf
For clients who are not California residents, you can fill out a Form 588 Nonresident Withholding Waiver Request. If you have been filing state taxes for the previous two taxable years, it is likely that the request will be approved. Here is a google search for the form 588:http://goo.gl/4fwV3
For more info, please read the property manager blog regarding tax withholding.
http://www.ftb.ca.gov/forms/2009/09_590.pdf
For clients who are not California residents, you can fill out a Form 588 Nonresident Withholding Waiver Request. If you have been filing state taxes for the previous two taxable years, it is likely that the request will be approved. Here is a google search for the form 588:http://goo.gl/4fwV3
For more info, please read the property manager blog regarding tax withholding.
