Q & A’s for Grass Valley, Nevada City, Auburn, and Colfax tenants, renters, lessees, landlords, property managers, investment property owners, and everyone in-between!
Q6: When a Grass Valley investment property owner lives out of the state of California, are there special tax withholding requirements that the enlisted broker must abide by?
A6: Yes. If a Grass Valley or Nevada City investment property owner owns real estate in California, but lives out of state, California tax laws require the enlisted broker to withhold state taxes from the rent collected. As of January 2, 2010, the amount required to be withheld is 7% of gross rents which exceed $1,500 per month after the management fee is collected. Keep in mind that there are certain exemptions to this law. You should consult a tax consultant for more detailed information.