Is A Withholding Certificate Right For Me?

According to the IRS, If the buyer or their immediate family has definite plans to reside in the property at least 50% of the number of days the property is in use by any one person (not counting the days the property is vacant) over the next two 12-month consecutive periods after closing, then the withholding can be reduced.

-If the buyer signs an affidavit to the statement above and the gross selling price of the property is not more than $300,000 USD, then the withholding can be reduced down to 0%.

-If the buyer signs an affidavit to the statement above and the gross selling price of the property is more than $300,000 USD but less than

$1,000,000 USD, then the withholding can be reduced down to 10%.

-For this exception, the transferee must be an individual. It is not available to buyer’s purchasing in the name of their business. Also, the property must be livable such as a house or condo. It is not available for vacant land. Generally, the title company or closing attorney will have access to such an affidavit.