I am an active duty member who just go re-assigned from California to Virginia. I am trying to rent out my current residence in CA before I leave. I was just informed by my property manager about a CA Franchise Tax Board law that withholds 7% of your monthly rent for all out of state owners. I have been researching to see if there are any exemptions possibly under the service member civil relief act, would anyone happen to know if I would be exempt from this tax due to my military status or not? Thank you in advance for your help!
Military service does not appear to be an exemption. Exemptions:
- CA resident
- Corporations, LLP, LLC doing business in CA or if you have a permanent place of business in CA
- Estate where the deceased was a CA resident at the time of death
- Tax-exempt organizations
- Insurance Companies, IRA's, Qualified Pension and Profit Sharing Plans
- CA non-grantor trusts
You can get a waiver or reduced withholding if:
- You filed CA tax returns for the past 2 years and you are current on taxes
- You have not filed taxes in the past two years, but are making estimated tax payments for the current year and do not owe past years taxes.
Interesting, thank you so much for the info @Greg M. At this point I'm going to have to see how much that 7% cuts into my cash flow, and go from there.