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Tax Withholding for California Non-Resident Landlords
by Rental Housing Association
April 24, 2009
For decades, managers of commercial properties whose owners live outside of California have been required to withhold a percentage of rent and send it to the state. Now, regulators at the California Franchise Tax Board proposed to include residential properties under new guidelines. Under the new rules, property managers who manage properties for owners living outside of California would be required to withhold seven percent of all distributions and payments associated with rent on a monthly basis and send it to the state quarterly. The withholding percentage would be higher for owners living outside of the United States. Implementation of the new regulations begins January 2010.
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