Ohio 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 Ohio Seller's Affidavit of Nonforeign Status is a legal document used in real estate transactions within the state of Ohio. This affidavit is a vital component of the closing process and is required to verify the citizenship status of the seller(s) involved. Its purpose is to ensure compliance with federal tax laws, specifically the Foreign Investment in Real Property Tax Act (FIR PTA). Keywords: Ohio Seller's Affidavit of Nonforeign Status, real estate transactions, closing process, citizenship status, federal tax laws, Foreign Investment in Real Property Tax Act, FIR PTA. There are two major types of Ohio Seller's Affidavit of Nonforeign Status: 1. Individual Seller's Affidavit of Nonforeign Status: This form is used when the seller(s) are individuals who are not subject to FIR PTA withholding. It requires the seller(s) to certify their non-foreign status by providing personal information, such as their name, address, and social security number. Additionally, it may require a notary public or other authorized individual to witness the seller's signature. 2. Entity Seller's Affidavit of Nonforeign Status: This form is used when the seller(s) are entities, such as corporations, partnerships, or limited liability companies (LCS). Similar to the Individual Seller's Affidavit, it verifies the non-foreign status of the entity by collecting information such as the entity's name, address, Employer Identification Number (EIN), and the name, title, and signature of an authorized representative. Completing the Ohio Seller's Affidavit of Nonforeign Status is crucial as it helps the buyer, escrow agent, and other parties involved in the transaction comply with FIR PTA regulations. By signing this affidavit, the seller(s) affirm that they are not foreign persons and are therefore exempt from FIR PTA withholding, which is typically 15% of the sale price. Notarization or witnessing of signatures may be required to add an extra layer of authentication and validity to the document. In summary, the Ohio Seller's Affidavit of Nonforeign Status plays a vital role in real estate transactions by verifying the citizenship status of the seller(s). It ensures compliance with FIR PTA regulations and helps facilitate a smooth closing process. Both the Individual Seller's Affidavit and Entity Seller's Affidavit are designed to collect the necessary information to affirm the non-foreign status of the seller(s).

The Ohio Seller's Affidavit of Nonforeign Status is a legal document used in real estate transactions within the state of Ohio. This affidavit is a vital component of the closing process and is required to verify the citizenship status of the seller(s) involved. Its purpose is to ensure compliance with federal tax laws, specifically the Foreign Investment in Real Property Tax Act (FIR PTA). Keywords: Ohio Seller's Affidavit of Nonforeign Status, real estate transactions, closing process, citizenship status, federal tax laws, Foreign Investment in Real Property Tax Act, FIR PTA. There are two major types of Ohio Seller's Affidavit of Nonforeign Status: 1. Individual Seller's Affidavit of Nonforeign Status: This form is used when the seller(s) are individuals who are not subject to FIR PTA withholding. It requires the seller(s) to certify their non-foreign status by providing personal information, such as their name, address, and social security number. Additionally, it may require a notary public or other authorized individual to witness the seller's signature. 2. Entity Seller's Affidavit of Nonforeign Status: This form is used when the seller(s) are entities, such as corporations, partnerships, or limited liability companies (LCS). Similar to the Individual Seller's Affidavit, it verifies the non-foreign status of the entity by collecting information such as the entity's name, address, Employer Identification Number (EIN), and the name, title, and signature of an authorized representative. Completing the Ohio Seller's Affidavit of Nonforeign Status is crucial as it helps the buyer, escrow agent, and other parties involved in the transaction comply with FIR PTA regulations. By signing this affidavit, the seller(s) affirm that they are not foreign persons and are therefore exempt from FIR PTA withholding, which is typically 15% of the sale price. Notarization or witnessing of signatures may be required to add an extra layer of authentication and validity to the document. In summary, the Ohio Seller's Affidavit of Nonforeign Status plays a vital role in real estate transactions by verifying the citizenship status of the seller(s). It ensures compliance with FIR PTA regulations and helps facilitate a smooth closing process. Both the Individual Seller's Affidavit and Entity Seller's Affidavit are designed to collect the necessary information to affirm the non-foreign status of the seller(s).