Delaware Seller's Affidavit of Nonforeign Status

• Category: Federal - IRS
• State: Multi-State
• Control #: US-0604BG
• Format: Word; Rich Text

Description

Section 1445 of the Internal Revenue Code provides that a transferee of U.S. real property interest must withhold tax if the transferor is a foreign person. To inform the transferee that withholding of tax is not required is upon the disposition of a U.S. real property, this affidavit may be executed. The Delaware Seller's Affidavit of Nonforeign Status is an important document used in real estate transactions in Delaware. It serves to declare the seller's non-foreign status, which is crucial for compliance with the Foreign Investment in Real Property Tax Act (FIR PTA) and ensures that the buyer is not required to withhold any part of the purchase price for tax purposes. This affidavit is designed to protect both parties involved in the transaction by verifying the seller's residency status. It is a legally binding document that must be completed truthfully and accurately. By signing this affidavit, the seller certifies that they are either a United States citizen, a resident alien with a green card, or a domestic corporation, partnership, trust, or estate. The Delaware Seller's Affidavit of Nonforeign Status may differ in specific details depending on the circumstances of the sale. Here are some variations or additional types of this affidavit that might be encountered: 1. Individual Seller's Affidavit of Nonforeign Status: This type of affidavit is used when the seller is an individual (U.S. citizen or resident alien) and is not engaged in any business activity as an entity. 2. Corporate Seller's Affidavit of Nonforeign Status: When the seller is a domestic corporation, this variation of the affidavit is utilized. It requires the corporation to verify its corporate status and provide relevant information about its structure and officers. 3. Partnership Seller's Affidavit of Nonforeign Status: This affidavit is applicable if the seller is a domestic partnership. It outlines the partnership's details and confirms that it is not a foreign entity subject to FIR PTA regulations. 4. Trust or Estate Seller's Affidavit of Nonforeign Status: In cases where the seller is a trust or estate, this type of affidavit is used. It includes information about the trust or estate's beneficiaries, trustees, and administrators to establish compliance with FIR PTA requirements. It is essential to recognize that the Delaware Seller's Affidavit of Nonforeign Status should be completed accurately and submitted to the buyer or their representative before the transaction's closing. Failure to provide this document may result in the buyer being responsible for withholding taxes from the purchase price, leading to potential legal and financial consequences. Therefore, it is highly recommended consulting with an attorney or real estate professional for guidance while preparing and executing this affidavit.

The Delaware Seller's Affidavit of Nonforeign Status is an important document used in real estate transactions in Delaware. It serves to declare the seller's non-foreign status, which is crucial for compliance with the Foreign Investment in Real Property Tax Act (FIR PTA) and ensures that the buyer is not required to withhold any part of the purchase price for tax purposes. This affidavit is designed to protect both parties involved in the transaction by verifying the seller's residency status. It is a legally binding document that must be completed truthfully and accurately. By signing this affidavit, the seller certifies that they are either a United States citizen, a resident alien with a green card, or a domestic corporation, partnership, trust, or estate. The Delaware Seller's Affidavit of Nonforeign Status may differ in specific details depending on the circumstances of the sale. Here are some variations or additional types of this affidavit that might be encountered: 1. Individual Seller's Affidavit of Nonforeign Status: This type of affidavit is used when the seller is an individual (U.S. citizen or resident alien) and is not engaged in any business activity as an entity. 2. Corporate Seller's Affidavit of Nonforeign Status: When the seller is a domestic corporation, this variation of the affidavit is utilized. It requires the corporation to verify its corporate status and provide relevant information about its structure and officers. 3. Partnership Seller's Affidavit of Nonforeign Status: This affidavit is applicable if the seller is a domestic partnership. It outlines the partnership's details and confirms that it is not a foreign entity subject to FIR PTA regulations. 4. Trust or Estate Seller's Affidavit of Nonforeign Status: In cases where the seller is a trust or estate, this type of affidavit is used. It includes information about the trust or estate's beneficiaries, trustees, and administrators to establish compliance with FIR PTA requirements. It is essential to recognize that the Delaware Seller's Affidavit of Nonforeign Status should be completed accurately and submitted to the buyer or their representative before the transaction's closing. Failure to provide this document may result in the buyer being responsible for withholding taxes from the purchase price, leading to potential legal and financial consequences. Therefore, it is highly recommended consulting with an attorney or real estate professional for guidance while preparing and executing this affidavit.