The DR 1083 form is an essential document used in Colorado for reporting information related to the conveyance of a real property interest. Specifically, it must be filed when real estate valued at $100,000 or more is sold by nonresidents of Colorado, as it helps in the collection of withholding tax anticipated on the gain from the sale. Each section of the form gathers comprehensive information from the names and addresses of the transferor and, if applicable, their spouse, to the specifics of the property sold, ensuring all necessary details are reported to the Colorado Department of Revenue.
The process of conveying real property interests in Colorado is subject to specific procedures and tax implications, especially when such transactions involve nonresidents. Against this backdrop, the DR 1083 Colorado form emerges as a crucial document, framed by the Colorado Department of Revenue to ensure compliance and appropriate handling of related taxes. This form catifies detailed information regarding the conveyance of a Colorado real property interest. It encompasses various critical pieces of information including the transferor's personal details, the type of property being sold, the date of the closing, property description, selling price, among other financial details related to the transaction. Importantly, the DR 1083 form also covers stipulations regarding Colorado tax withholding requirements for sales exceeding $100,000 by nonresidents, alongside affirmations that may exempt the transferor from such withholdings—ranging from evidence of Colorado residency to affirmations regarding the potential lack of taxable gain on the sale. Additionally, when certain conditions are met that necessitate tax withholding, the form diligently instructs on the submission of another document, the DR 1079, thereby streamlining the process for remitting withheld taxes to the state. Undoubtedly, the DR 1083 form is pivotal in safeguarding both the state’s fiscal interests and those of the parties involved in property transactions, ensuring that such transfers adhere to Colorado’s legislative requirements on property sales and tax withholdings.
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. Transferor's Last Name
First Name
Middle Initial
Address
City
State
Zip
Spouse's Last Name (if applicable)
2. Transferor is (check one):
If other, please specify:
Individual
Estate
Corporation
Trust
Other (specify)
3.
SSN
Colorado Account Number
4. FEIN
5.
Type of property sold
6.Date of closing (MM/DD/YY)
7.
Address or legal description of property sold
8.
Selling price of the property
$
9.
Selling price of this transferor's interest
10. If Colorado tax was withheld, check this box
11. Amount of tax withheld
12. If withholding is not made, give reason (check one):
a. Afirmation of Colorado residency signed
b. Afirmation of permanent place of business signed
c. Afirmation of principal residence signed
d. Afirmation of partnership signed
e. Afirmation of no tax reasonably estimated to be due to no gain on sale signed
f. No net proceeds
13. Title Insurance Company
Phone Number
(
)
File this form together with DR 1079, if applicable, within 30 days of the closing date with the
Colorado Department of Revenue
*141083==29999*
Afirmation of Colorado Residency
I (we) hereby afirm that I am (we are) the transferor(s) or the iduciary 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 iduciary
Date (MM/DD/YY)
Spouse's signature (if applicable)
Afirmation of Permanent Place of Business
I hereby afirm 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 oficer
Afirmation of Sale by Partnership
I hereby afirm that the transfer of property described on this DR 1083 was sold by an organization deined as a partnership under section 761(a) of the Internal Revenue Code and required to ile an annual federal partnership return
of income under section 6031(a) of the Internal Revenue Code.
Signature of general partner
Afirmation of Principal Residence
I hereby afirm 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.
Signature of transferor
Spouse's signature if applicable
Afirmation of No Reasonably Estimated Tax to be Due
I hereby afirm that I am (we are) the transferor(s) or an oficer of the corporate-transferor or a iduciary of the estate or trust-transferor of the property described on the front side of this form, and I (we) further afirm 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 afirmation 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.
Signature of transferor, oficer or iduciary
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.
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 iled 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.
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 qualiied by law to
transact business in Colorado, or if it maintains and staffs a permanent ofice 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 beneit 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;
the transferee is a bank or corporate beneiciary under a mortgage or beneiciary 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 Ofice 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 afirmation 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 deined
in section 761(a) of the Internal Revenue
Code required to ile 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 ile 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 afirmation by
the transferor.
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 iled
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 iled. 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.
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, theDR1083beingpreparedforJoneswouldshow $150,000online8and$60,000online9.Notethat 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, thetitleinsurancecompanyorthepersonproviding theclosingandsettlementservicesmustcomplete 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.
Due date and penalty. The title insurance company or other
person providing the closing and settlement services must ile 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 ive hundred dollars or ten percent of the amount required to be withheld, not to exceed twenty-ive hundred
dollars.
Filling out the DR 1083 form is important for reporting information regarding the conveyance of a Colorado real property interest. Below are clear, step-by-step instructions to guide you through the process of completing this document. Carefully following these steps will help ensure the form is filled out correctly and in compliance with Colorado Department of Revenue requirements.
After the DR 1083 form is fully completed, it must be filed with the DR 1079 if applicable, within 30 days of the closing date. Submission should be directed to the Colorado Department of Revenue, Denver, Co 80261-0005. Proper completion and timely filing are crucial to comply with Colorado's reporting requirements for the conveyance of real property interests. Remember to review the form carefully before submitting to ensure all information is accurate and complete.
What is the DR 1083 form used for in Colorado?
The DR 1083 form is a document mandated by the Colorado Department of Revenue to record and report the conveyance of a real property interest within Colorado. It is primarily used in transactions where real estate valued at $100,000 or more is sold by nonresidents, to ensure the appropriate withholding tax, in anticipation of the state income tax due on the gain from the sale, is accounted for. This form helps in the proper documentation of such transactions and aids in tax compliance.
Who needs to file the DR 1083 form?
This form must be filed by the transferor (seller) of a Colorado real property interest when they are nonresidents of Colorado and the property sold is valued at $100,000 or more. Requirements also extend to corporations, trusts, and estates involved in such transactions. The key determinant is the residency status of the seller and the value of the property being conveyed.
When is the DR 1083 form due?
The completed DR 1083 form, along with the DR 1079 form if applicable, must be submitted to the Colorado Department of Revenue within 30 days following the closing date of the real estate transaction. Timely submission is crucial to avoid penalties for late filing.
What if Colorado tax is not withheld at the time of the transaction?
If Colorado tax is not withheld at the time of the real estate transaction, the DR 1083 form must still be filed, citing the reason for non-withholding. Reasons may include affirmation of Colorado residency, affirmation of a permanent place of business in Colorado, affirmation that the property was the principal residence, or that no tax is estimated to be due because of no gain on the sale, among others. Each scenario provides a legal basis on which withholding may be waived.
What are the consequences of not filing the DR 1083 form?
Failing to file the DR 1083 form within the specified timeframe can lead to penalties. Those responsible for withholding and remitting the tax but failing to do so will be liable for either five hundred dollars or ten percent of the amount required to be withheld, up to a maximum of twenty-five hundred dollars. It is therefore critical for involved parties to comply with filing requirements to avoid fiscal penalties.
Can the DR 1083 form be filed if the property is sold for less than $100,000?
Generally, the DR 1083 form is not required for property sales valued at less than $100,000 as these transactions are exempt from the withholding requirement. However, proper records and documentation should be kept to substantiate the value of the transaction in case of future inquiries or audits by the Colorado Department of Revenue.
Filling out the DR 1083 form, which is central to ensuring compliance with Colorado's property transaction regulations, often proves challenging for many. Missteps in this process can lead to unnecessary delays, penalties, or even legal complications. Here, we unravel six common mistakes people make so you can steer clear of them.
Understanding these common mistakes can significantly improve the accuracy of the DR 1083 form submission, thereby ensuring a smoother transaction process. It's always advisable to review the form carefully and consult with a tax professional or legal advisor if any uncertainty arises. This way, you can avoid potential pitfalls and comply effectively with Colorado's property transfer regulations.
When dealing with real estate transactions in Colorado, specifically those that require the filing of the DR 1083 form, it's important to have a comprehensive understanding of related documents often used in conjunction. These documents play vital roles in ensuring the legality and completeness of property conveyance processes. Having the right forms at hand can make the transaction smoother and more transparent for all parties involved.
In conclusion, the DR 1083 form is just one part of a complex process involving various documents and legal requirements. Whether you're a buyer, a seller, or a professional in the real estate industry, understanding and correctly handling these documents are essential for a successful and lawful real estate transaction in Colorado. A keen attention to detail and strict adherence to the guidelines will serve all parties well in navigating the intricacies of real estate conveyance.
The DR 1083 Colorado form, mandated by the Colorado Department of Revenue, serves to capture information regarding the conveyance of a Colorado real property interest. Its structure and purpose draw similarities with other forms both within and outside the state of Colorado, designed to regulate and document transactions involving real property. Three forms, in particular, share common ground with the DR 1083 in terms of their function and requirements: the IRS Form 1099-S, the Colorado DR 1079, and the Real Property Transfer Declaration (TD-1000).
IRS Form 1099-S, "Proceeds from Real Estate Transactions," parallels the DR 1083 as it involves reporting the sale or exchange of real estate. Both forms are integral in the conveyance process, ensuring that appropriate taxes are reported and paid. The IRS uses Form 1099-S to collect federal tax, while DR 1083 focuses on Colorado state tax implications. Their resemblance lies not just in their purpose but also in the critical information they gather, such as the property's selling price, the date of closing, and the parties involved. However, Form 1099-S has a broader application, capturing a wider array of real estate transactions across the United States, whereas DR 1083 is specific to Colorado.
Colorado DR 1079, another state-specific document, "Withholding Tax Return for Dispositions by Nonresidents of Colorado Real Property," complements DR 1083 closely. This form is used alongside DR 1083 when there is a requirement to withhold Colorado income tax on the sale of real property by nonresidents. DR 1079 handles the tax withheld at closing and ensures its proper remittance to the Colorado Department of Revenue. The synergy between DR 1083 and DR 1079 is evident, as information reported on DR 1083 concerning the transaction aids in determining the necessity and amount of withholding reported on DR 1079. Their interconnection underscores a seamless continuity in managing Colorado’s tax obligations related to real estate transactions.
The Real Property Transfer Declaration (TD-1000) shares similarities with the DR 1083 form by gathering detailed information on the property sold, including its use, the condition of sale, and price. Both are crucial in the state’s assessment and taxation processes but serve slightly different ends. The TD-1000 aids county assessors in determining property values for tax purposes, whereas DR 1083 focuses more narrowly on the sale’s reporting and tax implications. Despite these differences, both forms are pivotal in compiling valuable data on real estate transactions, influencing tax assessment, and compliance within Colorado.
When filling out the DR 1083 Colorado form, which deals with conveyances of Colorado real property interests, attention to detail and accuracy is crucial. To ensure the process goes smoothly, here are some top do's and don'ts:
When it comes to the process of selling real estate in Colorado, the DR 1083 form is a critical piece of documentation. However, there are several misconceptions about this form that can create confusion. Here’s a breakdown of common misunderstandings:
Understanding these misconceptions about the DR 1083 form can help ensure a smoother process when dealing with the conveyance of Colorado real property interests. Selling property can be complicated, but clarifying these aspects of Colorado's real estate and tax requirements can help alleviate some of the challenges involved.
When dealing with the filing and utilization of the DR 1088 (10/17/13), Colorado Form, which addresses the conveyance of a Colorado real property interest, several key points should be noted to ensure compliance and accuracy. These are essential for individuals or entities involved in real estate transactions within the state of Colorado.
Understanding and adhering to the guidelines outlined in the DR 1083 form is critical for both the transferors and the professionals assisting them in the transaction. It not only ensures compliance with Colorado's tax laws but also facilitates a smoother conveyance process by preemptively addressing potential tax liabilities.
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