Form Rew 1 1040 PDF Details

The Form REW-1-1040, issued by Maine Revenue Services, is a crucial document for the transfer of real property, especially involving sellers who are individuals or sole proprietors. This form plays a key role in the process by ensuring the proper withholding and remittance of state income tax when a nonresident of Maine sells real property within the state. Specifically designed to be filled out by the buyer or other transferee mandated to withhold, this form requires detailed information including the seller's name, social security number, and the details of the property transfer such as the date, total consideration, and the amount withheld. It's significant not only for its role in tax collection but also for its impact on both buyers and sellers in such transactions. Multiple sellers necessitate individual forms for each party receiving proceeds, highlighting the need for meticulous documentation in transactions involving real estate. Moreover, the form includes provisions for exceptions and the possibility of obtaining a withholding certificate to adjust the withholding rate, which demonstrates the tailored approach to handling diverse transaction scenarios. This form must be submitted promptly within 30 days of the property transfer, underscoring the importance of timeliness in fulfilling tax obligations. Additionally, it serves as a prerequisite for nonresident sellers to file a Maine income tax return, potentially to claim a refund for any overpayment of the real estate withholding amount. Its comprehensive structure not only facilitates tax compliance but also provides clear guidance to ensure the correct execution of real estate transactions under Maine law.

QuestionAnswer
Form NameForm Rew 1 1040
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other namesmaine rew forms, MAINE, rew 1040 form, REW-1-1120

Form Preview Example

Seller
4. Address of seller

FORM REW-1-1040 MAINE REVENUE SERVICES

 

REAL ESTATE WITHHOLDING RETURN

99

2013

 

FOR TRANSFER OF REAL PROPERTY

 

 

*1201401*

 

For sellers who are individuals or sole proprietors

 

 

TO BE COMPLETED BY THE BUYER OR OTHER TRANSFEREE REQUIRED TO WITHHOLD

For MULTIPLE SELLERS, complete a separate Form REW-1 for each seller receiving proceeds.

1.

 

Use Form REW-1-1040 only for sellers who are individuals or sole proprietors.

Check here if

 

 

 

 

 

 

 

 

 

 

 

 

installment sale

 

 

 

2.

Name of seller subject to withholding.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Seller’s Last Name

First Name

 

M.I.

 

 

 

 

 

 

 

 

 

 

 

Spouse’s Last Name (if fi ling jointly)

Spouse’s First Name

 

M.I.

3. Enter the social security number(s) of the seller and the seller’s spouse.

Spouse

 

 

Number and street

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

City

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State

 

 

 

 

ZIP Code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5. Seller’s daytime telephone number:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.

Date of transfer

7. Total consideration

 

 

 

 

 

 

 

 

 

 

8. Percentage of total gross

 

 

 

 

 

 

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

proceeds received by this

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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seller

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9.

Physical location and use of property

 

 

 

 

 

 

 

 

 

 

10. Date property acquired by seller

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11.

 

Rate of withholding

 

 

 

 

 

 

 

12. Amount withheld for this seller:

 

 

 

 

 

,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

a. 2.5% of sales price

 

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

b. Less than 2.5% - attach withholding certificate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Enter certifi cate number:

 

 

 

)

 

 

 

DO NOT SEND CASH - Make check payable to: Treasurer, State of Maine.

 

 

 

 

 

 

 

 

 

 

 

 

Write seller’s social security number

on the check.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13. Name of buyer (Withholding agent or other transferee)

 

 

 

 

14. Address of buyer/withholding agent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number and street

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15. Social security number/federal ID number of withholding agent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

City

 

 

 

 

 

 

 

 

 

State

ZIP Code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct and complete.

Signature of buyer

Date

Signature of buyer’s spouse if property held jointly

Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature of real estate escrow person

Date

Real estate escrow person’s EIN or social security number

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate escrow person’s daytime phone number

 

 

 

Real estate escrow person’s address

 

NOTE: Payments received by Maine Revenue Services will not be refunded prior to fi ling of the taxpayer’s Maine income tax return.

(Any claim for refund of an overpayment of this withholding must be fi led within three years from the time the return was fi led or three years from the time the tax was paid, whichever expires later.)

Mail this form and check to: Maine Revenue Services, Income/Estate Tax Division - REW, P.O. Box 9101, Augusta, ME 04332-9101

Overnight delivery address: Maine Revenue Services, Income/Estate Tax Division - REW, 51 Commerce Drive, Augusta, ME 04330

Telephone: 207-626-8473

Fax: 207-624-5062

realestate.withholding@maine.gov

Rev. 10/12

GENERAL INSTRUCTIONS

PURPOSE OF FORM: 36 M.R.S.A. § 5250-A requires a buyer to withhold state income tax when real property located in Maine is acquired from a nonresident of Maine. The buyer must withhold and remit to the state tax assessor 2.5% of the consideration received by the transferor (seller) on the transfer. A completed Form REW- 1-1040 (for sellers who are individuals or sole proprietors), Form REW-1-1041 (for sellers that are trusts or estates), and /or Form REW-1-1120 (for sellers that are corporations) must accompany the remittance.

WHO MUST FILE: A buyer (individual, firm, partnership, association, society, club, corporation, estate, trust, business trust, receiver, assignee or any other group or combination acting as a unit) of a Maine real property interest who is required to withhold tax must file the applicable REW-1 forms. If two or more persons are joint transferees, each must withhold the required amount. However, the obligation of each will be met if one of the joint transferees withholds and remits to Maine Revenue Services the total amount required.

If there are multiple sellers, complete a separate REW-1 form for each seller receiving proceeds from the sale. For example, if the seller is a partnership, complete a separate REW-1 form for each partner receiving proceeds from the disposition. If the partners are individuals, complete forms REW-1-1040. Be sure to complete the appropriate REW-1 form for each seller: REW-1-1040 (individuals, sole proprietors), REW-1-1041 (trusts, estates), REW-1-1120 (corporations).

EXCEPTIONS: The buyer is not required to withhold or file this return if any of the following applies:

a.The seller furnishes to the buyer written certification stating, under penalty of perjury, that as of the date of transfer the seller is a resident of Maine;

b.The seller or the buyer has received from the state tax assessor a certificate of waiver stating that no tax is due on the gain from the transfer or that the seller has provided adequate security to cover the liability;

c.The consideration for the property is less than $50,000; or,

d.Written notification of the withholding requirements has not been provided to the buyer. The real estate escrow person is liable for the withholding tax unless it is shown that the failure to notify is due to reasonable cause.

WITHHOLDING CERTIFICATE ISSUED BY THE STATE TAX ASSESSOR: A withholding certificate may be issued by the state tax assessor to reduce or eliminate withholding on transfers of Maine real property interests by nonresidents. The certificate may be issued if:

1.No tax is due on the gain from the transfer; or,

2.Reduced withholding is appropriate because the 2.5% amount exceeds the seller’s maximum tax liability.

If one of the above is applicable, apply for the certificate no later than fi ve business days prior to closing.

WHEN TO FILE: A buyer must report and remit the tax withheld to Maine Revenue Services within 30 days of the date of transfer of the property.

WHERE TO FILE: Send Form REW-1-1040 with payment directly

to: Maine Revenue Services, Income/Estate Tax Division - REW, P.O. Box 9101, Augusta, ME 04332-9101 (do not send payment or Form REW-1-1040 with the real estate transfer tax form). Provide one copy of Form REW-1-1040 to the real estate escrow person, one copy to the buyer, and two copies to the seller.

SPECIFIC INSTRUCTIONS

Block 2. Enter the name of the seller and the seller’s spouse.

Block 3. Enter the social security number(s) of the seller and the seller’s spouse.

Block 4. Enter the address of the seller and the seller’s spouse. Block 5. Enter seller’s daytime telephone number.

Block 6. Enter the date of this transfer.

Block 7. Enter the total consideration (see 36 MRSA § 5250- A(1)(A) for definition).

Block 8. Enter the percentage of total proceeds received by this seller.

Block 9. Enter the location of the property, including town and street address. Specify use before the transfer, such as principal residence, vacation home, condominium, rental property, commercial, or vacant land.

Block 10. Enter the date the property was acquired by the seller.

Block 11. Check the appropriate space to indicate the amount withheld. If the parties obtained a withholding certificate from the state tax assessor authorizing a reduced rate of withholding, enter the certificate number and attach a copy of the certifi cate to this return.

Block 12. Enter the dollar amount withheld for the seller in block 2.

Block 13. Enter the name of the withholding agent (buyer). Block 14. Enter the address of the withholding agent (buyer).

Block 15. Enter the social security number or federal ID number of the withholding agent (buyer).

Seller’s Filing Requirement. Generally, a seller who is a nonresident individual must fi le a Maine income tax return for the tax year during which the sale of the Maine property occurred. A return is not required if the capital gain from the sale, combined with other Maine-source taxable income, does not result in a Maine income tax liability. However, a Maine tax return must be fi led to get a refund of any real estate withholding amount in excess of the Maine income tax liability. The seller must attach a copy of the REW-1 form to the Maine income tax return to ensure proper credit for real estate withholding paid. For more information on the Maine fi ling requirements, see Maine Rule 806 and the instructions for Form 1040ME and Schedule NR or NRH at www.maine.gov/revenue.

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