Form REW-5 "Request for Exemption or Reduction in Withholding of Maine Income Tax on the Disposition of Maine Real Property" - Maine

What Is Form REW-5?

This is a legal form that was released by the Maine Department of Administrative and Financial Services - a government authority operating within Maine. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on December 1, 2019;
  • The latest edition provided by the Maine Department of Administrative and Financial Services;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of Form REW-5 by clicking the link below or browse more documents and templates provided by the Maine Department of Administrative and Financial Services.

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Download Form REW-5 "Request for Exemption or Reduction in Withholding of Maine Income Tax on the Disposition of Maine Real Property" - Maine

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2021 Form REW-5
Maine Revenue Services
Income/Estate Tax Division - REW
Request for Exemption or
Tel. 207-626-8473 Fax 207-624-5062
Email: realestate.withholding@maine.gov
Reduction in Withholding of
If possible, submit via email or fax.
Maine Income Tax on the
P.O. Box 1060
Disposition of Maine Real Property
Augusta, ME 04332-1060
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 certifi cate 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
Clear
Print
2021 Form REW-5
Maine Revenue Services
Income/Estate Tax Division - REW
Request for Exemption or
Tel. 207-626-8473 Fax 207-624-5062
Email: realestate.withholding@maine.gov
Reduction in Withholding of
If possible, submit via email or fax.
Maine Income Tax on the
P.O. Box 1060
Disposition of Maine Real Property
Augusta, ME 04332-1060
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 certifi cate 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)
Representative name (and title, if applicable)
Firm or company name
Mailing address
City, state, zip
Country (if not United States) Email address
Telephone number
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 confi dential 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 fi le with Maine Revenue Services.
Seller signature
Print name (and title, if applicable)
Date
Additional seller signature (if applicable) Print name (and title, if applicable)
Date
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, fi rm, 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 Certifi cate Issued by the State Tax
Assessor:
A withholding certifi cate may be issued by the State Tax Assessor to reduce
or eliminate withholding on transfers of Maine real property interests by nonresidents.
The certifi cate 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 certifi cate no later than fi ve 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 certifi cates for this
type of foreclosure sale (see 36 M.R.S. § 5250-A(3-A)).
Specifi c Instructions
Email Form REW-5 and all supporting documents to realestate.withholding@maine.gov or fax to (207) 624-5062.
Applicant’s name:
Enter the applicant’s (seller’s) name.
address.
NOTE: If there are multiple sellers of the property, each
Social Security Number (SSN) or Employer Identifi cation
applicant (seller) must complete a separate Form REW-
Number (EIN):
Enter the SSN or EIN of the applicant listed
5, except that married taxpayers that will fi le a joint Maine
on this form. If applicable, enter your spouse’s SSN.
individual income tax return requesting a withholding
exemption or reduction may complete one form, listing both
E-mail address:
Provide the applicant’s email address,
names and SSN’s on the form.
or the email address of the applicant’s Power of Attorney
(POA). If using the POA’s email, be sure to include page 2 of
Mailing address:
Enter the applicant’s current mailing
2
Specifi c Instructions, continued
Form REW-5 or a properly completed Form 2848-ME.
items purchased (including the cost of each and providing
Line 1.
If applicant’s ownership percentage is less than
receipts), provide a copy of the contract with the builder,
100%, all sellers must be listed on this line. The seller(s) are
provide the building permit fi led with the town, or provide the
typically listed on the Purchase and Sale Agreement. Attach
tax assessment from the year you received the certifi cation
additional pages, if necessary.
of occupancy. Attach additional pages as needed.
Line 2.
Enter the names(s) of the buyer(s). The buyers are
Line 8.
Enter the total gross sales price of the property. Do
typically listed on the Purchase and Sale Agreement. Attach
not subtract any fees. The sale price should match the sales
additional pages, if necessary.
price on the Purchase and Sales Agreement. If there are
multiple sellers, list this seller’s ownership percentage.
Line 3.
Enter the physical address of the property being
sold. If applicable, enter the map, block, lot, and sub-lot.
Line 9.
Enter the amount of the applicant’s allowable closing
costs from the current sale of this property*. Also see line 6.
Line 4.
Enter the date the seller acquired the property.
*Certain closing costs do not qualify. If available, enclose
Line 5.
Indicate the method by which the seller obtained
a copy of the HUD-1 or Closing Statement from when you
ownership of the property.
purchased the property. Closing costs generally include
realtor fees, transfer taxes, and deed preparation fees.
a) If you purchased the property, attach verifi cation of
the original sales price, such as HUD-1, dually signed
For more information about selling your home, determining
Purchase and Sales Agreement, original Real Estate
basis, reporting the sale, capital improvements and costs,
Transfer Tax Declaration (RETTD) or tax assessment
see IRS Publication 523.
from the town when purchased. If you purchased land
and built a home, provide proof of the purchase price of
Line 10.
If the property was rented or used commercially,
the land only.
enter the allowed, or allowable, accumulated depreciation
b) If you inherited the property, provide a complete
determined in accordance with the Internal Revenue Code.
appraisal dated within six months of the decedent’s
death or a copy of the tax assessment from the town.
Line 11.
Indicate whether the sale will be reported as a gain,
Enter the decedent’s name, SSN and the date of death
loss, exclusion, installment sale or like-kind exchange. If you
in the spaces provided.
do not know if the sale will result in a loss or a gain, leave
this line blank.
c) If you received the property as a gift, provide documents
to verify the original purchase price paid by the previous
Representative Information & Power of Attorney
owner. If you cannot locate these documents, the town
where the property is located may have a record of
Although not required, you may designate someone to
the purchase price. As a general rule, for purposes of
represent you during the real estate withholding process.
determining the gain, you will use the donor’s adjusted
To do so, complete the Representative Information and
basis at the time of gift as your basis.
Power of Attorney sections on page 2 of Form REW-5. The
designated representative must be an individual, although
Line 6.
Enter the amount of the allowable original closing
a fi rm cannot be designated as your representative, an
costs you paid at the time of acquisition*. Also see line 9.
individual of a fi rm can be.
Appointing a Power of Attorney designates a representative
Line 7.
Provide a list of capital improvements made to
to receive confi dential information and to discuss tax records
the home along with the cost of each improvement. Do
related to your Form REW-5 fi led with Maine Revenue
not include repairs made to the property. For example:
Services. The designated representative may not act on
Cleaning or fi xing a furnace is not a capital improvement, but
your behalf, unless a completed Form 2848-ME (Power of
installing a new furnace is. If you built the home, provide the
Attorney) is provided.
information for the build. You can make a detailed list of the
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