The Form REW-5 serves a crucial purpose in the realm of real estate transactions within Maine, facilitating a smoother process for both sellers and the Maine Revenue Services. As an application, this form seeks either exemption from or a reduction in the Maine income tax withheld on the sale of real property situated in the state. To ensure the form's effectiveness, it's vital to submit it before the transaction concludes, as no adjustments are permitted post-closing. Detailed within are sections that require the seller's information, including their name and contact details, alongside specifics of the property's sale such as acquisition method, estimated closing date, total sales price, and the property's use history under the current ownership. Additional segments mandate a disclosure of potential capital gains or losses, aligning with IRS guidelines, and outline the taxpayer's intended compliance with certain IRS rules that could influence the taxable outcome of the sale. With supporting documentation necessary for substantiation, the Form REW-5 stands as an indispensable tool for managing tax obligations related to real property disposals in Maine, designed to bridge the gap between tax liabilities and situational tax fairness for sellers.
| Question | Answer |
|---|---|
| Form Name | Rew 5 Form |
| Form Length | 1 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 15 sec |
| Other names | SSN, rew 5 maine, maine rew forms, preparer |
FORM
MAINE REVENUE SERVICES
INCOME/ESTATE TAX DIVISION - REW
P.O. Box 1064
Augusta, ME
Tel.
Email: realestate.withholding@maine.gov
REQUEST FOR EXEMPTION OR REDUCTION IN WITHHOLDING OF MAINE INCOME TAX ON
THE DISPOSITION OF MAINE REAL PROPERTY
This form must be submitted and granted prior to closing. No exemptions or reduced withholding
certifi cates will be granted after the closing date.
Applicant (seller) name: _______________________________________________________________________________________
Mailing address______________________________________________________________________________________________
SSN or Fed. EIN: ___________________________________ Daytime phone no. _________________________________________
This is a request for a withholding rate reduction/exemption, per the Internal Revenue Code as operative under 36 M.R.S.A. § 5250- A, or the provision of any United States treaty because the State of Maine tax liability on this sale will be less than the withholding. The rate of withholding is 2.5% of total consideration or, at the request of the seller, the State Tax Assessor may prescribe a reduced amount of withholding, equal to the gain multiplied by 8.5%.
1.Attach a draft copy of the current Maine Real Estate Transfer Tax Declaration. If this form is not attached, Maine Revenue Services will be unable to process your request. Contact your real estate escrow person (usually your real estate agent, title company or attorney) for assistance in acquiring this form.
2. |
Date property acquired _____________ . Method of |
3. |
Estimated date of closing on the property subject to the real |
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estate withholding requirement (i.e., the property |
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acquisition (purchase, gift, inheritance other/explain) |
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listed on related Form |
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__________________________________________ |
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4. |
Total sales price of pending sale: |
5. |
List all uses of property during your ownership: (i.e., principal |
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residence, rental, commercial, vacation home, etc.) _____ |
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$ ___________________________ |
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If rental/commercial use during your ownership, length of time: |
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years_____________ months ___________ |
6.* |
Explain your gain/loss for this property for the year of sale, including an explanation of your adjusted basis computation per |
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IRS rules. ___________________________________________________________________________________________ |
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___________________________________________________________________________________________________ |
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7.* |
Which IRS rule do you intend to follow to report the sale of property (i.e., exclusion of capital gain on principal residence, |
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like kind exchange, installment sale, etc.) __________________________________________________________________ |
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___________________________________________________________________________________________________ |
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7A.* |
How do you qualify for this rule (list the highlights of this rule and how they relate to your sale). ______________________ |
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___________________________________________________________________________________________________ |
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___________________________________________________________________________________________________ |
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8.Attach copies of supporting documentation (i.e., proof of purchase price, notarized affi davit of intent to follow a nonrecogni- tion of gain rule, etc.).
*Consult the Internal Revenue Service or your tax preparer for assistance in completing lines 6 through 7A. Complete lines 7 and 7A only if you have a gain on line 6 and intend to follow a nonrecognition of gain rule or qualify to reduce this gain for the year of sale per the Internal Revenue Code. Call this offi ce for assistance in completing this form.
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. You must have power of attorney to sign this form if you are not the applicant. Do not forward the power of attorney to this office.
Signed: ___________________________________________ |
Title:___________________________________ |
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Print name: ________________________________________ |
Date:___________________________________ |
Rev. 09/12 |