Home Buying in Los Angeles>Question Details

dog50, Home Buyer in Los Angeles, CA

Does the franchise tax board demand funds be withheld in escrow from sellers account these days? (either a calif seller or out of state seller(

Asked by dog50, Los Angeles, CA Sun Mar 23, 2014

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Yes. I am assuming that they did this to you and you are wondering why. You can just call the escrow officer and I am sure they would be more than happy to explain it to you. Just send me an email if you have any further questions.

Alex Greer
Loan Officer
NMLS #1056079

0 votes Thank Flag Link Sun Mar 23, 2014
Hi Dog,
Yes, for capital gains on certain investment properties, escrow is required to withhold taxes.
Good luck,
0 votes Thank Flag Link Sun Mar 23, 2014
One of the purposes of escrow is to make sure the title is transferable from seller to buyer. You may have funds taken out to clear liens and obligations tied to the home.
For more resources contact me.
0 votes Thank Flag Link Sun Mar 23, 2014
But would an escrow officer routinely hold out funds for state capital gains on the house in escrow tomthe Franchise tax bd if the seller is out of state? What's to keep an out of state seller from not paying those taxes?
Flag Sun Mar 23, 2014
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