Maine Form Rew 5 – Fill Out and Use This PDF

Note: MRS may request additional documentation prior to authorizing an exemption or reduction in real estate tax withholding. This form must be submitted no fewer than 5 business days prior to closing. If mailed, please allow an additional 2-3 weeks for processing.

Applicant’s name (include spouse’s name, if applicable): _________________________________________________

Mailing address: ________________________________________________________________________________

SSN(s) or federal EIN:_________________________________ Daytime phone number: ______________________

Applicant’s email address : ________________________________________________________________________

Applicant’s percentage of ownership (See instructions):______________ %

1.Names of all sellers: _________________________________________________________________________

2.Buyer(s) name(s): ___________________________________________________________________________

3.Property for sale: MAP: __________ BLOCK: ____________ LOT:____________ SUB-LOT: _____________

Physical address: _______________________________ Municipality/Township:______________________

4.Date property acquired by seller: _______________

5. Method of acquisition/Proof of purchase price:

Amount: $ _________________

a)Purchase (see instructions)._____________

b)Inherited (see instructions).

Decedent’s name: ____________________ SSN:_________________ Date of death:______________

c)Gift or other (see instructions).__________________________________

6.Applicant’s allowable closing costs from original purchase of property (See instructions): $ ___________________

7.Capital improvements (see instructions): $_________________________________________________________

8.Total sales price and closing date of current pending sale: $ ________________ 8a. Date: __________________

9.Applicant’s estimated allowable current closing costs (see instructions): $ ______________

10.If rental/commercial use during ownership, length of time: Years: ________________ Months: _______________

Provide allowed or allowable accumulated depreciation. $ ____________________________________________

11.How will this sale of real property be reported on the seller’s federal income tax return? (See instructions.)

__________________________________________________________________________________________

Under penalties of perjury, I declare that I have examined this application and attached schedules and statements, and to the best of my knowledge and belief they are true, correct and complete. If you are signing on behalf of the seller(s), you must provide a written power of attorney authorization with this request. To assign a designated representative, complete the Representative Information and Power of Attorney on page 2. You must sign the authorization on page 2 or complete Form 2848-ME (available at www.maine.gov/revenue/tax-return-forms/general-forms) before MRS can speak with your designated representative. If you are signing on behalf of your employer, include authorization.

Applicant’s signature: ______________________________________________ Date: ________________________

Print name: _____________________________________________________________________________________

This request for a withholding rate reduction or exemption is submitted in accordance with 36 M.R.S. §§ 5250-A(3)(B) & (4), which authorizes the State Tax Assessor to issue a certificate of no tax due or reduction in the amount of tax to be withheld.

The rate of withholding is 2.5% of the total consideration or, at the request of the seller, the State Tax Assessor may authorize a reduced amount of withholding equal to the gain multiplied by 7.15% for individuals, 8.93% for a C corporation, in calendar year 2021.

Revised: December 2020

Representative Information (complete only if you want someone to represent you during the real estate withholding process)

Power of Attorney (complete only if you want someone to represent you during the real estate withholding process)

By signing below, the selling party appoints the individual named in the above section to act as their representative with authority to receive confidential information and to discuss your tax records, related to this form, with Maine Revenue Services. I understand that my representative may not act on my behalf, unless I provide a Form 2848-ME, Power of Attorney. I also understand that signing this form does not revoke other power of attorney forms on file with Maine Revenue Services.

General Instructions

Purpose of Form: To request an exemption or reduction in withholding of Maine income tax on the disposition of Maine real property.

Who may File: A seller (individual, firm, partnership, association, society, club, corporation, estate, trust, business trust, receiver, assignee or any other group or combination acting as a unit) of Maine real property who, at the time of closing, is a nonresident of Maine.

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 five business days prior to closing.

Note: If property is subject to foreclosure and the consideration received for the property does not exceed the debt secured by that property, no Maine income tax withholding is required. Maine Revenue Services does not issue withholding exemption certificates for this type of foreclosure sale (see 36 M.R.S. § 5250-A(3-A)).

Specific Instructions

Email Form REW-5 and all supporting documents to realestate.withholding@maine.gov or fax to (207) 624-5062.

2

Specific Instructions, continued

3