Maine Real Estate Withholding Return for Transfer of Real Property - for Corporate Sellers

Real Estate Withholding Return for Transfer of Real Property - for Corporate Sellers
REW-1-1120
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Real Estate Withholding Payment Voucher
for Transfer of Maine Real Property
by Sellers that are Corporations

Form REW-1-1120

2024

99
*2301500*

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.

Use Form REW-1-1120 only for sellers who are subject to Maine income tax as a corporation, including a
corporation that receives proceeds through ownership in a pass-through entity (see instructions).

Check here if
installment sale

a)
Selling entity name

Entity EIN

For pass-through entity seller only. See instructions before completing these lines.
b)
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 1b.
2.

Address of corporate seller
Current mailing address	

3.

State	

Municipality/Township	

Use of property

Date Property Acquired

5. Date of transfer

6. Total consideration (sales price)

$
8.

ZIP code

Physical location and use of property
Street address (if none, provide the map, block, and lot numbers)	

4.

City	

Rate of withholding - attach certificate if less than 2.5%

9.

a. 2.5% of sales price

.00

7.

Seller’s
percentage
of ownership.

Amount withheld for this seller

.00

$

b. Less than 2.5%
(Enter certificate number:

)

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

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

%

DO NOT SEND CASH - Make check payable to: Treasurer, State of Maine.
Write seller’s federal employer identification number on the check.

11. 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 and belief, they are true, correct and complete.
Signature of buyer	

Date	

Signature of buyer’s spouse (if property held jointly)	

Signature of corporate officer (seller)	

Date	

Corporate officer’s name and title (seller)

Date

Seller’s contact phone number

Buyer(s) and seller(s) must retain a copy of Form REW-1-1120. See instructions.
File and pay your Maine Real Estate Withholding electronically at revenue.maine.gov and
eliminate the need to file a paper form. Otherwise, mail Form REW-1-1120 and check to:
Maine Revenue Services, Income/Estate Tax Division - REW, P.O. Box 9101, Augusta, ME 04332-9101.

NOTE: Payments received by Maine Revenue Services will not be refunded prior to filing of the taxpayer’s Maine income tax return.
[email protected]

Revised: December 2023

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-1-1040 (for sellers who
are individuals or sole proprietors), Form REW-1-1041 (for
sellers that are estates or trusts), and/or Form REW-1-1120
(for sellers that are corporations) must accompany the
remittance. 36 M.R.S. § 5250-A.

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 on
page 3.

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 applicable REW-1 form(s).
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:

1.	 No tax is due on the gain from the transfer; or

•	 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);

2.	 Reduced withholding is appropriate because the 2.5%
amount exceeds the seller’s maximum tax liability.
If applicable, complete Form REW-5 to apply for the
certificate no later than five business days prior to closing.

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

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.

•	 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).

Where to File: Use the Maine Tax
Portal (MTP) at revenue.maine.gov to
file Form REW-1-1120 and make your
real estate withholding payment online. The MTP allows
Maine taxpayers to file tax returns and make payments
online quickly, easily, and eliminates the need to file a paper
form.

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.

If mailing, send Form REW-1-1120 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-1-1120 with the real estate transfer
tax declaration). For overnight deliveries, send to: Maine
Revenue Services, Income/Estate Tax Division - REW, 51
Commerce Drive, Augusta, ME 04330. The Form REW1-1120 filed with MRS must be complete; do not redact or
remove any 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;
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;

Provide one copy of Form REW-1-1120 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.

c.	 The consideration for the property is less than $100,000;
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Seller’s Maine Income Tax Filing Requirement. Generally, a taxable corporation under Maine law that sells Maine
property must file a Maine income tax return for the taxable year during which the sale of the Maine property occurred
to calculate any Maine income tax due or overpaid. A return is not required if the capital gain from the sale, combined
with the corporation’s other business activity in Maine, does not exceed the thresholds set forth in 36 M.R.S. § 5200-B.
However, a Maine 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 tax was paid, whichever expires later. For more
information on the Maine filing requirements for corporations, see Maine Rule 808 and the instructions for Form 1120ME
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.	 Enter the name and federal employer identification
number (EIN) of the seller.
	

	

Line 7.	 Enter the percentage of total proceeds received by
the seller shown on line 1a. See specific instructions
below.

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-1-1040, 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
pass-through entity withholding or other entity-level
tax.

	

One seller. If the corporation on line 1a is the only
seller receving proceeds in the transaction, enter
100%.

	

For pass-through entity seller only. Enter the
distributive share percentage of the corporation
shown on line 1a.

Line 8.	 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.

On each Form REW-1-1120, line 1a, enter the
applicable name and EIN of the corporation in the
spaces provided. Also enter on line 1b the passthrough entity’s name, EIN, and pass-through
entity type.

Line 9.	 Enter the dollar amount withheld for the seller
shown on line 1a.

Line 2.	 Enter the current mailing address of the selling
entity. Do not list the address of the transferred
property.
Line 3.	 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, as well as town and street address.
Also enter what the property was used for before
the transfer. For example, principal residence,
vacation home, rental property, commercial, or
vacant land.

	

If line 8, box a is checked:

	

Multiply the total consideration (line 6) by the
seller’s percentage of ownership (line 7), then
multiply the result by 2.5% (0.025).	

	

If line 8, 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 10.	Enter the name of the withholding agent (buyer).

Line 4.	 Enter the date the property was acquired by the
seller.

Line 11.	 Enter the address of the withholding agent (buyer).

Line 5.	 Enter the date of this transfer.

Line 12.	Enter the social security number or federal ID
number of the withholding agent (buyer).

Line 6.	 Enter the total consideration (sales price).
Consideration means the total price paid, or
required to be paid, for real property valued in
money, whether received in money or otherwise,
and includes the amount of any mortgage, lien or
encumbrance on the real property. 36 M.R.S. §
5250-A.
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