Colorado Information with Respect to a Conveyance of a Colorado Real Property Interest

Information with Respect to a Conveyance of a Colorado Real Property Interest
Form DR 1083
DR 1083 (10/17/13)
COLORADO DEPARTMENT OF REVENUE
Denver, CO 80261-0005
www. TaxColorado.com

*141083==19999*

Information with Respect to a Conveyance
of a Colorado Real Property Interest
1.		

First Name

Transferor's Last Name

Address

City

Spouse's Last Name (if applicable)

First Name

Address

City

State

Estate

Zip
Middle Initial

State

2.	Transferor is (check one):
Individual 	

Middle Initial

Zip

If other, please specify:

Corporation

3.	 SSN

Trust

Other (specify)

Colorado Account Number

5.	 Type of property sold

4.	 FEIN
6.Date of closing (MM/DD/YY)

7.	 Address or legal description of property sold

City

State

8.	 Selling price of the property

$

9.	 Selling price of this transferor's interest

$

10.	 If Colorado tax was withheld, check this box

Zip

	

11.	 Amount of tax withheld

$

12.	 If withholding is not made, give reason (check one):
	

a. Affirmation of Colorado residency signed

	

b. Affirmation of permanent place of business signed

	

c. Affirmation of principal residence signed

	

d. Affirmation of partnership signed

	

e. Affirmation of no tax reasonably estimated to be due to no gain on sale signed

	

f. No net proceeds

13.	 Title Insurance Company
Address

Phone Number
(	)
City

State

Zip

File this form together with DR 1079, if applicable, within 30 days of the closing date with the
Colorado Department of Revenue
Denver, CO 80261-0005

*141083==29999*

Affirmation of Colorado Residency
I (we) hereby affirm that I am (we are) the transferor(s) or the fiduciary of the transferor of the property described on this
DR 1083 and that as of the date of closing I am (we are) or the estate or the trust is a resident of the State of Colorado.
Signed under the penalty of perjury
Signature of transferor or fiduciary

Date (MM/DD/YY)

Spouse's signature (if applicable)

Date (MM/DD/YY)

Affirmation of Permanent Place of Business
I hereby affirm that the transferor of the property described on this DR 1083 is a corporation which maintains a
permanent place of business in Colorado.
Signed under the penalty of perjury.
Signature of corporate officer

Date (MM/DD/YY)

Affirmation of Sale by Partnership
I hereby affirm that the transfer of property described on this DR 1083 was sold by an organization defined as a
partnership under section 761(a) of the Internal Revenue Code and required to file an annual federal partnership return
of income under section 6031(a) of the Internal Revenue Code.
Signed under the penalty of perjury.
Signature of general partner

Date (MM/DD/YY)

Affirmation of Principal Residence
I hereby affirm that I am (we are) the transferor(s) of the property described on this DR 1083 and immediately prior to the
transfer it was my (our) principal residence which could qualify for the exclusion of gain provision of section 121 of the
Internal Revenue Code.
Signed under the penalty of perjury.
Signature of transferor

Date (MM/DD/YY)

Spouse's signature if applicable

Date (MM/DD/YY)

Affirmation of No Reasonably Estimated Tax to be Due
I hereby affirm that I am (we are) the transferor(s) or an officer of the corporate-transferor or a fiduciary of the estate
or trust-transferor of the property described on the front side of this form, and I (we) further affirm that there will be no
Colorado income tax reasonably estimated to be due on the part of the transferor(s) as a result of any gain realized on
the transfer.
Please understand before you sign this affirmation that nonresidents of Colorado are subject to Colorado tax
on gains from the sale of Colorado real estate to the extent such gains are included in federal taxable income.
Signed under the penalty of perjury.
Signature of transferor, officer or fiduciary

Date (MM/DD/YY)

Spouse's signature if applicable

Date (MM/DD/YY)

Instructions for DR 1083
In general. With certain exceptions, sales of Colorado real
property valued of $100,000 of more, and are made by
nonresidents of Colorado, are subject to a withholding tax
in anticipation of the Colorado income tax that will be due
on the gain from the sale.

or

A transferor who is an individual, estate, or trust will be
subject to the withholding tax if either the federal Form
1099-S to be filed with the Internal Revenue Service
to report the transaction or the authorization for the
disbursement of the funds resulting from the transaction
shows a non-Colorado address for the transferor.

or

A corporate transferor will be subject to the withholding
tax if immediately after the transfer of the title to the
Colorado real property interest, it has no permanent place
of business in Colorado. A corporation will be deemed to
have a permanent place of business in Colorado if it is a
Colorado domestic corporation, if it is qualified by law to
transact business in Colorado, or if it maintains and staffs
a permanent office in Colorado.
Amount of withholding. The withholding shall be made
by the title insurance company or its authorized agent
or any attorney, bank, savings and loan association,
savings bank, corporation, partnership, association, joint
stock company, trust, unincorporated organization or any
combination thereof acting separately or in concert that
provides closing and settlement services. The amount
to be withheld shall be the lesser of: (a) two percent of
the selling price of the property interest or, (b) the net
proceeds that would otherwise be due to the transferor as
shown on the settlement statement.
"Closing and settlement services" means providing
services for the benefit of all necessary parties in
connection with the sale, leasing, encumbering,
mortgaging, creating a secured interest in and to the real
property, and the receipt and disbursement of money in
connection with any sale, lease, encumbrance, mortgage,
or deed of trust. [§10-11-102 (3.5), C.R.S.]
Exceptions to Withholding. Withholding shall not be
made when:
the selling price of the property is not more than
$100,000;
or
the transferor is an individual, estate, or trust and
both the Form 1099-S and the authorization for
disbursement of funds show a Colorado address for
the transferor;
or
the transferee is a bank or corporate beneficiary
under a mortgage or beneficiary under deed of trust,
and the Colorado real property is acquired in judicial
nonjudicial foreclosure or by deed in lieu of
foreclosure;

the transferor is a corporation incorporated under
Colorado law or currently registered with the
Secretary of State's Office as authorized to transact
business in Colorado;
the title insurance company or the person providing
the closing and settlement services, in good faith,
relies upon a written affirmation executed by the
transferor, certifying under the penalty of perjury
one of the following:
that the transferor, if a corporation, has a
permanent place of business in Colorado;
that the transferor is a partnership as defined
in section 761(a) of the Internal Revenue
Code required to file an annual federal return
of income under section 6031(a) of the Internal
Revenue Code;
that the Colorado real property being conveyed
is the principal residence of the transferor
which could qualify for the exclusion of gain
provisions of section 121 of the Internal
Revenue Code;
that the transferor will not owe Colorado
income tax reasonably estimated to be due
from the inclusion of the actual gain required
to be recognized on the transaction in the gross
income of the transferor.
Normally Colorado tax will be due on any transaction upon
which gain will be recognized for federal income tax purposes.
Gain will normally be recognized for federal income tax
purposes any time the selling price of the property exceeds
the total of the taxpayer's adjusted basis in the property,
plus the expenses incurred in the sale of the property. The
taxpayer's adjusted basis of the property will normally be
the taxpayer's total investment in the property, minus any
depreciation thereon he has previously claimed for federal
income tax purposes.
Partnership as Transferor. Sales of real property interests
by organizations recognized as partnerships for federal
income tax purposes and required to file annual federal
partnership returns of income will not be subject to the
Colorado withholding tax. This exception will not apply to
joint ownerships of property which are not recognized as
partnerships for federal income tax purposes. The sale of
property jointly owned by a husband and wife, for example,
is a sale by two individuals, not a sale by a partnership, and
not exempt from withholding tax.

Completion of DR 1083. DR 1083 must be completed and
submitted to the Department of Revenue with respect to
sales of Colorado real property if Colorado tax was withheld
from the net proceeds from the sale, or if Colorado tax would
have been withheld but for the signing of an affirmation by
the transferor.

Line 9.

Selling price of the transferor's interest is that part
of the selling price entered on line 8 apportioned to
the ownership interest of the transferor for whom
the DR 1083 is being prepared. For example, if
the property was owned 60% by Smith and 40%
by Jones and the property was sold for $150,000,
the DR 1083 being prepared for Jones would show
$150,000 on line 8 and $60,000 on line 9. Note that
it is the amount on line 8 that determines whether
or not the $100,000 withholding tax threshold is
met, not the amount entered on line 9, but the
withholding is to be computed on the amount on
line 9 if it is smaller than the amount on line 8.

Line 10

If Colorado tax is withheld on the transaction,
check the box on line 10 and show the amount
withheld on line 11.

Line 11

If Colorado tax is being withheld on the transfer,
the title insurance company or the person providing
the closing and settlement services must complete
DR 1079 which is the form used to transmit the tax
withheld to the Colorado Department of Revenue.

Line 12.

If Colorado tax is not withheld on the transaction,
check appropriate box on line 12.

Information. Forms and additional information are available
through the Tax Information Index at www.TaxColorado.com
or call (303) 238-SERV (7378) for information.
Line 1.

Enter the name and address of the transferor.
In the case of multiple transferors of the same
real property, a separate DR 1083 must be filed
for each transferor except that if the transferors
are husband and wife at the time of closing who
held the property as joint tenants, tenants by the
entirety, tenants in common, or as community
property, and they are both subject to withholding
or both exempt from withholding, treat them as
a single transferor and list both of their names
on line 1. Do not list husband and wife as one
transferor if they do not choose to be listed as
one transferor. Use the same address as is used
on the federal FORM 1099-S if one is required to
be filed. Otherwise, use the most current address
available.

Line 3.

If both husband and wife are listed on line 1, show
both Social Security Numbers on line 3.

Line 5.

Type of property sold would be residential, rental,
commercial, unimproved land, farm, etc.

Line 6.

Address or legal description would be the same
as shown on federal FORM 1099-S.

Line 7.

Date of closing would be the same as shown on
Form 1099-S.

Line 8.

Selling price of the property is the contract sales
price. Selling price means the sum of:
• the cash paid or to be paid but not including
interest;
• the fair market value of other property
transferred or to be transferred; and
• the outstanding amount of any liability assumed
by the transferee to which the Colorado real
property interest is subject immediately before
and after the transfer.

Due date and penalty. The title insurance company or other
person providing the closing and settlement services must
file DR 1083, together with DR 1079 if Colorado tax was
withheld on the transfer, with the Colorado Department of
Revenue within 30 days of the closing date of the transaction.
Any title insurance company or its authorized agent which is
required to withhold any amount pursuant to §39-22-604.5,
C.R.S. (relating to withholding on transfers of Colorado real
property interests) and fails to do so shall be liable for the
greater of five hundred dollars or ten percent of the amount
required to be withheld, not to exceed twenty-five hundred
dollars.