Massachusetts Seller's Affidavit of Nonforeign Status

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US-0604BG
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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.

How to fill out Seller's Affidavit Of Nonforeign Status?

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FAQ

Qualified Substitute is the Default. The seller will then manually complete Paragraph 3B and provide the form to the title or escrow company acting as the qualified substitute. The title or escrow company may use C.A.R. Form QS, or its own form, to satisfy its obligation to notify the buyer.

The Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) establishes that persons purchasing U.S. real property interests from foreign individuals must withhold 10% of the gross amount realized on the transaction.

Certification of Non-Foreign Status FIRPTA is the Foreign Investment in Real Property Act. If you are selling real estate in the United States, the IRS requires certain disclosures to avoid non-U.S. Persons from escape U.S. Tax on the sale of U.S. Real Estate.

With a Certification of Non-Foreign Status, the seller of real estate is certifying under penalty of perjury, that the seller is not foreign.

The Seller's Affidavit of Non-Foreign Status ( AS-14) is used to document the exemption if the Seller is not a NRA. This can be signed by a: US citizen; US green card holder; or. Non-citizen who meets the substantial presence test (based on the number of days actually present in the US).

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Massachusetts Seller's Affidavit of Nonforeign Status