Yes, it’s tax time again and there is news for you out-of-state property owners thinking of selling your Oregon property this year.
As of January 1, 2008, non-residents will have to pay a withholding tax on the sale of their Oregon real estate. This applies to individuals as well as C corporations that are not doing business in Oregon. The amount to be withheld is the least of 3 amounts:
- 4% of the sale amount of the transaction;
- 4% of the net proceeds resulting from the transaction; or
- 10% of the taxable gain.
If one of the following requirements is met withholding the tax will not be required:
- The sale amount for the real property does not exceed $100,000;
- The property is acquired through foreclosure;
- The owner is a resident of Oregon—or if a C corporation—has a permanent place of business in this state; or
- The owner receives professional advice that the transfer will not result in Oregon taxable income.
This law change is due to House Bill 2592.
Here is Oregon form OR-18 that tells you more about the what, where, when, how and HOW MUCH.
Disclaimer: I am not a tax expert and this writing is for informational purposes only. Please see your tax advisor for more information and advice.
Photo by YM, used under creative commons license.
Technorati Tags: Oregon Tax, Real Estate, Property, January 1, Sales, Witholding
Related posts:
