Seller-financing a flip in CA: How do i fill out the withholding forms (and who withholds what)?

[John D.]

Can someone point me to the most appropriate way to fill out the Real Estate Withholding Tax Statement (593) given the following scenario? I assume we check the "installment sale" box but I am unclear as to who is required to withhold what.  Thanks for any help!  I've consulted my tax people but would appreciate your help given I would like to speed up the turnaround.

I purchased the subject property, unimproved land, for $79k a few months ago.
I am now under contract to sell it, owner financed.

$125,000 purchase price.  $25,000 down.

Seller then finances the remaining $100,000 interest at 12% per annum payable at approximately $1,000 per month, remaining principle balance due in 5 years.

Buyer agrees to make principle reduction payments of $10,000 every 6 months from originiation.

Payments to adjust accordingly, minus $100 per month with each principal reduction payment.