The Oregon Revised Statute 314.258 and Oregon Administrative Rule 150-314.258 "provide for withholding of tax on certain real estate transactions of nonresident individuals and on C corporations that do not do business in Oregon." This new law and rule apply to property conveyances that occur on or after January 1, 2008.
1.
What is real estate withholding?
Real estate withholding is a prepayment of income tax required when an individual nonresident or a C corporation not registered to do business in Oregon sells Oregon property. Authorized agents (escrow agents) are required to withhold the tax unless an exception exists. If you are selling Oregon property, your title company may ask you to provide:
- proof that you are a resident;
- a completed Form WC; or
- other written assurance.
Your escrow agent will be required to withhold tax if they do not have proof that you are an exempt transferor or have an exempt transfer as described below.
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