For Out-of-State Sellers, the State of VT will withhold 2.5% of the proceeds of the sale for potential tax liability owed the State by the Seller. If however the Seller can prove to the State it is not owing any taxes, fees etc, then the Seller can file for a Waiver Certificate which might only take 10 days to process.. So plan ahead so no tax need be withheld from your sale. Otherwise, you will need to file a tax return to get your refund if you owe no taxes.
VT State Real Estate Withholding Tax Contact is : Paul Brodowski, 802-828-6851 direct orgeneral 802-828-2777, He is very pleasant to work with.
When the form is being filled out by the seller but the property has not yet closed, The required Buyers soc sec # need not be input…The State tax rep said to just put 999-99-9999 as the buyers soc sec # so you need Not have his soc sec number ahead of time. At the closing you will get that number to submit if needed.
Provide the HUD 1 or Closing Disclosure Statement from your last closing/purchase when you bought it…showing purchase/acquisition cost And the new Purchase and Sale Agreement with current buyer showing, New Sale Price.…If it is a loss, there should be no tax due. You may want to have on hand the costs to update or maintain the property as well.