Maine Real Estate Withholding Return for Transfer of Real Property - for Trust or Estate Sellers

Real Estate Withholding Return for Transfer of Real Property - for Trust or Estate Sellers
REW-1-1041
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Form REW-1-1041

2023

Real Estate Withholding Payment Voucher
Transfer of Maine Real Property
by Sellers that are Estates or Trusts

99
*2309800*

To be completed by the buyer or other transferee required to withhold
IMPORTANT - Multiple Sellers: A separate Form REW-1 must be completed for each seller receiving proceeds (see instructions).

	 1.	 Type of entity (check one): Note: If the seller is a revocable living trust or grantor trust in which an individual is treated as 	
	 	 the owner of the trust, file Form REW-1-1040 using the owner’s name and social security number (SSN).
Decedent’s estate
(enter decedent’s SSN:	
Simple Trust

)
Complex trust

Check here if
installment sale

Qualified Funeral Trust
(QFT)

Qualified Disability Trust

Bankruptcy estate
(Chapter 7)

ESBT (S Portion Only)

Pooled Income

Bankruptcy estate
(Chapter 11)

	 2. 	 Name and federal employer identification number (EIN) of seller subject to withholding. (See instructions).	
a)

	

b)

	

Name of estate or trust (as it appears on federal Form SS-4) 	

Estate or trust EIN. Do not enter a SSN on this line.	

Name and title of fiduciary or trustee	

Fiduciary SSN or EIN	

For pass-through entity seller only. See instructions before completing these lines. 	 	

		

	

    

c)
	 	
Entity name	
Entity EIN	
Entity type (LLC, S corporation, trust, etc.)    
	 Note: A Form REW-1-1040, REW-1-1041, or REW-1-1120, whichever applies, must be completed for each member/owner of the entity shown on line 2c.
3. 	 Address of fiduciary or trustee shown on line 2b
	

Current mailing address	

City	

State	

4.	

Physical location and use of property

5.	

Street address (if none, provide the map, block, and lot numbers)	 Municipality/Township	
Date Property Acquired	
6. 	 Date of transfer
7. 	 Total consideration (sales price)

$
	 9.	

Rate of withholding - attach certificate if less than 2.5%

	

a.	 2.5% of sales price

	
    	

b.	 Less than 2.5%
	 (Enter certificate number:                                                   )

	 11.	 Name of buyer (withholding agent or other transferee)

	 13.	 Social security number/federal ID number of withholding agent

.00

ZIP code                                                                                                                      

Use of property
8.	 Seller’s
	
percentage 	 	
	
of ownership.

%

10.	 Amount withheld for this seller

$
	

.00

DO NOT SEND CASH - Make check payable to: Treasurer, State of Maine.

	

Write seller’s federal employer identification number on the check.

12.	 Address of buyer/withholding agent

	

Current mailing address

	

City	

State	

ZIP code

	 Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge         
	 belief, they are true, correct and complete.

	 Signature of buyer	

Date	

Signature of buyer’s spouse if property held jointly	

	 Signature of fiduciary or trustee	

Date	

Fiduciary’s daytime phone number

Date

Buyer(s) and seller(s) must retain a copy of this form. See instructions.

NOTE: Payments received by Maine Revenue Services will not be refunded prior to filing of the taxpayer’s Maine income tax return.
Mail this form and check to:	 Maine Revenue Services, Income/Estate Tax Division - REW, P.O. Box 9101, Augusta, ME  04332-9101.
Overnight delivery address:	 Maine Revenue Services, Income/Estate Tax Division - REW, 51 Commerce Drive, Augusta, ME  04330.
Telephone: (207) 626-8473

[email protected]

Revised: December 2022

General Instructions
Purpose of Form: An estimated Maine income tax payment
is required to be withheld and paid at the time that real
property located in Maine is purchased or otherwise
acquired from a nonresident of Maine. The buyer of the
property must withhold and remit to the state tax assessor
2.5% of the consideration received by the transferor (seller)
on the transfer. To report and pay the estimated income tax
withheld, a completed Form REW-1-1041 (for sellers that
are estates or trusts), Form REW-1-1040 (for sellers who
are individuals or sole proprietors), and/or Form REW-11120 (for sellers that are corporations) must accompany the
remittance. 36 M.R.S. § 5250-A.

c.	 The consideration for the property is less than $100,000;
d.	 Written notification of the withholding requirements has
not been provided to the buyer. The real estate escrow
person is liable for the withholding tax unless it is shown
that the failure to notify is due to reasonable cause;
e. 	The seller is the State or an agency or a political
subdivision of the State, the federal government or
an agency of the federal government, an organization
exempt from income taxes pursuant to the Internal
Revenue Code, § 501(a), an insurance company exempt
from Maine income taxes or a subsidiary of an insurance
company described in 24-A M.R.S., § 1157 (5)(B)(1) that
is exempt from Maine income taxes; or

Also see Seller’s Maine Income Tax Filing Requirement
below.

f. 	 The property is being transferred via a foreclosure sale.
Foreclosure sale means a sale of real property incident
to a foreclosure and includes a mortgagee’s sale of real
estate owned property of which the mortgagee, or thirdparty entity, retained or took ownership as the result of
an unsuccessful attempt to sell the property at the time
of a previous foreclosure auction.

Who Must File: A buyer (individual, firm, partnership,
association, society, club, corporation, estate, trust, business
trust, receiver, assignee or any other group or combination
acting as a unit) of a Maine real property interest who is
required to withhold must file the appropriate REW-1 forms.
If two or more persons are joint transferees, each must
withhold the required amount. However, the obligation of
each will be met if one of the joint transferees withholds and
remits to Maine Revenue Services the total amount required.

Withholding Certificate Issued by the State Tax
Assessor: A withholding certificate may be issued by the
State Tax Assessor to reduce or eliminate withholding on
transfers of Maine real property interests by nonresidents.
The certificate may be issued if:

Be sure to complete the appropriate REW-1 form for each
seller:
•	 REW-1-1040 - For sellers who will report this sale on
the Maine individual income tax return, Form 1040ME.
(Individuals, sole proprietors, grantor or revocable trusts,
individual members of pass-through entities);

1.	 No tax is due on the gain from the transfer; or
2.	 Reduced withholding is appropriate because the 2.5%
amount exceeds the seller’s maximum tax liability.

•	 REW-1-1041- For sellers who will report this sale on
the Maine fiduciary income tax return, Form 1041ME.
(estates, trusts); or

If applicable, complete Form REW-5 to apply for the
certificate no later than five business days prior to closing.
When to File: A buyer must report and remit the tax withheld
to Maine Revenue Services with this form within 30 days of
the date of transfer of the property. Any claim for refund of
an overpayment of this withholding must be filed within three
years from the time the return was filed or three years from
the time the tax was paid, whichever expires later.

•	 REW-1-1120 - For sellers who will report this sale on
the Maine corporate income tax return, Form 1120ME.
(C corporations, other entities taxable at the corporate
level).
Important note (multiple sellers): If there are multiple
sellers, you must complete a separate REW-1 form for each
seller receiving proceeds from the sale. For example, if the
seller is a partnership, complete a separate REW-1 form for
each partner receiving proceeds from the disposition.

Where to File: Send Form REW-1-1041 with payment
directly to: Maine Revenue Services, Income/Estate Tax
Division - REW, P.O. Box 9101, Augusta, ME  04332-9101
(do not send payment or  Form REW-1-1041 with the real
estate transfer tax declaration). The Form REW-1-1041 filed
with MRS must be complete; do not redact or remove and
taxpayer identification numbers (SSNs or EINs).

Exceptions: The buyer is not required to withhold or file this
return if any of the following applies:
a.	 The seller furnishes to the buyer written certification
stating, under penalty of perjury, that as of the date of
transfer the seller is a resident of Maine, as defined in 36
M.R.S. § 5250-A;

Provide one copy of Form REW-1-1041 to the real estate
escrow person, one copy to the buyer, and two copies to the
seller. Copies retained by the seller(s), buyer(s), and real
estate escrow person should have the taxpayer identification
numbers redacted or removed.

b.	 The seller or the buyer has received from the state tax
assessor a certificate of waiver stating that no tax is
due on the gain from the transfer or that the seller has
provided adequate security to cover the liability;
2

Seller’s Maine Income Tax Filing Requirement. Generally, a seller that is a nonresident estate or trust must file a
Maine income tax return for the tax year during which the sale of the Maine property occurred to calculate any tax due
or overpaid. A return is not required if the capital gain from the sale, combined with other Maine-source taxable income,
does not result in Maine taxable income greater than zero for the taxable year. However, a Maine income tax return
must be filed to get a refund of any estimated real estate withholding amount in excess of the Maine income tax liability.
The seller must attach a copy of the REW-1 form to the Maine income tax return to ensure proper credit for real estate
withholding paid. Any claim for refund of an overpayment of withholding must be filed within three years from the due
date of the return or three years from the time the tax was paid, whichever expires later. For more information on the
Maine filing requirements, see the instructions for Form 1041ME at www.maine.gov/revenue.

Specific Instructions
Important note: If there are multiple sellers, you must complete a separate Form REW-1 for each seller receiving proceeds
from the sale.
Line 1.	

Check the appropriate box to indicate the type
of estate or trust. This is identical to the box the
seller must check on the Maine fiduciary income
tax return, Form 1041ME.   

Line 2.	

Enter the name and federal employer
identification number (EIN) of the estate or
trust. Also enter the name and Social Security
Number (SSN) or EIN of the fiduciary or trustee.

	

Note: Do not enter a SSN on line 2a. For grantor
or revocable trusts that use an owner’s SSN,
you must use Form REW-1-1040 to remit the
payment.

	

For pass-through entity seller only. If the
seller of the property is a pass-through entity
(LLC, S corporation, partnership, grantor or
revocable trust, etc.), a separate Form REW-11040, REW-1-1041, or REW-1-1120, whichever
applies, must be filed for each individual,
fiduciary, or corporate member/owner. In no
case may a pass-through entity claim real
estate withholding as a payment of Maine passthrough entity withholding or other entity-level
tax.

	

Line 3.	

Line 4.	

Line 5.	

On each Form REW-1-1041, lines 2a and 2b,
enter the applicable name and EIN of the estate
or trust and the name and SSN or EIN of the
fiduciary or trustee in the spaces provided. Also
enter on line 2c the pass-through entity’s name,
EIN, and pass-through entity type.
Enter the current mailing address of the fiducary
or trustee shown on line 2b. Do not list the
address of the transferred property.  
Enter the physical address and municipality/
township of the property. If there is no street
address, enter the map, block, lot, and sub-lot
numbers. Also enter what the property was used
for before the transfer. For example, principal
residence, vacation home, rental property,
commercial, or vacant land.
Enter the date the property was acquired by the
seller.

3

Line 6. 	

Enter the date of this transfer.

Line 7.	

Enter the total consideration (sales price).
Consideration means the total price paid, or
required to be paid, for real property valued in
money, whether recieved in money or otherwise,
and includes the amount of any mortgage, lien
or encumbrance on the real property. 36 M.R.S.
§ 5250-A.

Line 8.	

Enter the percentage of total proceeds received
by the seller shown on line 2a. See specific
instructions below.

	

One seller. If the estate or trust on line 2a is the
only seller receving proceeds in the transaction,
enter 100%.

	

For pass-through entity seller only. Enter the
distributive share percentage of the estate or
trust shown on line 2a.

Line 9. 	

Check the appropriate space to indicate the
rate of withholding. If the parties obtained
a withholding certificate from the State Tax
Assessor authorizing a reduced rate of
withholding, enter the certificate number and
attach a copy of the certificate to this return.

Line 10. 	

Enter the dollar amount withheld for the seller
shown on line 2a.

	
	

If line 9, box a is checked:
Multiply the total consideration (line 7) by the
seller’s percentage of ownership (line 8), then
multiply the result by 2.5% (0.025).	

	
	

If line 9, box b is checked:
Enter the reduced amount of withholding shown
on the withholding certificate issued by the State
Tax Assessor to the seller.

Line 11. 	

Enter the name of the withholding agent (buyer).

Line 12. 	

Enter the address of the withholding agent (buyer).

Line 13. 	

Enter the social security number or federal ID
number of the withholding agent (buyer).