State of Maine Rew 5 Form 2020

FORM REW-5 MAINE REVENUE SERVICES INCOME/ESTATE TAX DIVISION - REW P. O. Box 1064 Augusta ME 04332-1064 Tel. 207-626-8473 Fax 207-624-5062 Email realestate. withholding maine. gov REQUEST FOR EXEMPTION OR REDUCTION IN WITHHOLDING OF MAINE INCOME TAX ON THE DISPOSITION OF MAINE REAL PROPERTY TO BE COMPLETED BY SELLER A complete copy of this form a draft copy of the current Maine Real Estate Transfer Tax Declaration form and any supporting documentation must be submitted at least 5 business days prior to closing* No exemptions or reduced withholding certificates will be granted after the closing date. Documentation may be emailed or faxed* If documentation is mailed please allow an additional 2-3 weeks for processing* Applicant s seller s name Mailing address SSN or Fed* EIN Daytime phone no. E-mail address This request for a withholding rate reduction or exemption is submitted in accordance with 36 M. R*S* 5250-A 3 B 5250-A 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 2018. To avoid errors that delay processing be sure to complete this form in its entirety. 1. Required Documentation* You MUST attach a draft copy of the current Maine Real Estate Transfer Tax Declaration RETTD form* If this form is not attached Maine Revenue Services will be unable to process your request. Contact the real estate escrow person usually the title company/lawyer performing the closing for assistance in acquiring this form* 2. I am requesting an exemption from or a reduction in the Maine Real Estate Withholding tax. 3. Estimated closing date of current pending sale 4. Total sales price of current pending sale 5. Date property acquired by seller 6. Method of acquisition check appropriate box Purchase attach verification of original purchase price Inherited attach verification of the fair market value when inherited. Decedent s full name SSN date of death Gift or other explain provide verification 1 of 2 pages Both pages must be completed submitted Rev* 09/17 For questions 7 8 and 9 please consult the Internal Revenue Service www. IRS*gov or your tax preparer for assistance. 7. How will you be reporting this sale of real property on your federal return check appropriate box Loss/No gain Gain Exclusion of capital gain on principal residence Installment Sale attach copy of Installment Sale Agreement Like-kind exchange attach copy of the like-kind exchange agreement Check box if there is a boot receiving cash at closing. Amount of boot Other. Explain and cite the IRS rule being followed What was the use of this property during your ownership check all applicable boxes Principal Residence at least 2 out of the 5 years prior to the date of sale.