Carrollton Texas Non-Foreign Affidavit Under IRC 1445

• Category: Texas Real Estate - Closings
• State: Texas
• City: Carrollton
• Control #: TX-CLOSE7
• Format: Word; Rich Text

Description

This Non-Foreign Affidavit Under Internal Revenue Code 1445 is for a seller of real property to sign stating that he or she is not a foreign person as defined by the Internal Revenue Code Section 26 USC 1445. This document must be signed and notarized. Carrollton, Texas Non-Foreign Affidavit Under IRC 1445: A Comprehensive Overview In Carrollton, Texas, the Non-Foreign Affidavit Under IRC 1445 is a crucial legal document that plays a significant role in real estate transactions involving non-U.S. citizens or foreign entities. This affidavit serves as a declaration, confirming the taxpayer's status as a non-foreign individual, thereby exempting the buyer from withholding tax obligations under the Internal Revenue Code (IRC) Section 1445. The Non-Foreign Affidavit provides the necessary assurance to the Internal Revenue Service (IRS) that the seller of the property is not a foreign person, resulting in the exemption from withholding a specific percentage of the sale proceeds as a form of tax payment. Key elements of the Non-Foreign Affidavit Under IRC 1445: 1. Identification: The affidavit begins with the identification of the parties involved in the real estate transaction, including the buyer, the seller, and their respective legal representatives. 2. Confirmation of Non-Foreign Status: The affidavit contains a sworn statement from the seller attesting to their non-foreign status. It requires providing personal details such as full legal name, contact information, tax identification number (such as Social Security Number or ITIN), and residential address. 3. Supporting Documentation: The Non-Foreign Affidavit often requires supplementary documentation to substantiate the seller's claim of non-foreign status. This can include a copy of the seller's passport, visa, permanent resident card, or any other form of official identification. 4. Property Description: The affidavit provides a detailed description of the real estate property involved in the transaction. This information typically includes the property address, legal description, and the purchase price agreed upon by the parties. 5. Acknowledgment: The affidavit concludes with a section for signatures, affirming the authenticity and validity of the information provided. Signatures from both the seller and the buyer are generally required, along with the date of signing. Types of Non-Foreign Affidavit Under IRC 1445: 1. Individual Non-Foreign Affidavit: This type of affidavit is utilized when an individual, who is not a U.S. citizen or permanent resident, is selling the property. It requires the personal information of the seller as well as supporting documentation to establish non-foreign status. 2. Entity Non-Foreign Affidavit: This type of affidavit is applicable when a foreign entity, such as a corporation or partnership, is involved in the sale of the property. Apart from the seller's contact information, additional details, such as the entity's legal structure, taxpayer identification number, and evidence of its non-foreign status, are necessary. An accurately completed Non-Foreign Affidavit Under IRC 1445 ensures compliance with federal tax regulations and permits the smooth progression of real estate transactions involving non-U.S. citizens or foreign entities in Carrollton, Texas. It offers peace of mind to both buyers and sellers, allowing them to proceed confidently with the transaction. Note: It is essential to consult a qualified legal professional or tax advisor who specializes in real estate law to ensure compliance with the specific requirements and regulations associated with the Non-Foreign Affidavit Under IRC 1445 in Carrollton, Texas.

Carrollton, Texas Non-Foreign Affidavit Under IRC 1445: A Comprehensive Overview In Carrollton, Texas, the Non-Foreign Affidavit Under IRC 1445 is a crucial legal document that plays a significant role in real estate transactions involving non-U.S. citizens or foreign entities. This affidavit serves as a declaration, confirming the taxpayer's status as a non-foreign individual, thereby exempting the buyer from withholding tax obligations under the Internal Revenue Code (IRC) Section 1445. The Non-Foreign Affidavit provides the necessary assurance to the Internal Revenue Service (IRS) that the seller of the property is not a foreign person, resulting in the exemption from withholding a specific percentage of the sale proceeds as a form of tax payment. Key elements of the Non-Foreign Affidavit Under IRC 1445: 1. Identification: The affidavit begins with the identification of the parties involved in the real estate transaction, including the buyer, the seller, and their respective legal representatives. 2. Confirmation of Non-Foreign Status: The affidavit contains a sworn statement from the seller attesting to their non-foreign status. It requires providing personal details such as full legal name, contact information, tax identification number (such as Social Security Number or ITIN), and residential address. 3. Supporting Documentation: The Non-Foreign Affidavit often requires supplementary documentation to substantiate the seller's claim of non-foreign status. This can include a copy of the seller's passport, visa, permanent resident card, or any other form of official identification. 4. Property Description: The affidavit provides a detailed description of the real estate property involved in the transaction. This information typically includes the property address, legal description, and the purchase price agreed upon by the parties. 5. Acknowledgment: The affidavit concludes with a section for signatures, affirming the authenticity and validity of the information provided. Signatures from both the seller and the buyer are generally required, along with the date of signing. Types of Non-Foreign Affidavit Under IRC 1445: 1. Individual Non-Foreign Affidavit: This type of affidavit is utilized when an individual, who is not a U.S. citizen or permanent resident, is selling the property. It requires the personal information of the seller as well as supporting documentation to establish non-foreign status. 2. Entity Non-Foreign Affidavit: This type of affidavit is applicable when a foreign entity, such as a corporation or partnership, is involved in the sale of the property. Apart from the seller's contact information, additional details, such as the entity's legal structure, taxpayer identification number, and evidence of its non-foreign status, are necessary. An accurately completed Non-Foreign Affidavit Under IRC 1445 ensures compliance with federal tax regulations and permits the smooth progression of real estate transactions involving non-U.S. citizens or foreign entities in Carrollton, Texas. It offers peace of mind to both buyers and sellers, allowing them to proceed confidently with the transaction. Note: It is essential to consult a qualified legal professional or tax advisor who specializes in real estate law to ensure compliance with the specific requirements and regulations associated with the Non-Foreign Affidavit Under IRC 1445 in Carrollton, Texas.

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