The DR 1083 Colorado form is a document required by the Colorado Department of Revenue for reporting the conveyance of a real property interest in Colorado. This form captures essential information about the transferor and the property being sold, including details on tax withholding. Completing this form accurately is crucial for compliance with state tax regulations.
The DR 1083 form is a crucial document for anyone involved in the sale of real property in Colorado. This form, issued by the Colorado Department of Revenue, is designed to capture essential information regarding the transfer of real property interests. It requires details about the transferor, such as their name, address, and whether they are an individual, corporation, estate, or trust. Additionally, the form collects information about the property being sold, including its legal description, selling price, and closing date. A key aspect of the DR 1083 is its role in tax withholding; it helps determine whether Colorado income tax will be withheld from the proceeds of the sale, particularly for non-residents. The form also includes various affirmations that transferors can sign to indicate their residency status or other relevant conditions that may exempt them from withholding. Understanding the DR 1083 is essential for ensuring compliance with Colorado tax laws and facilitating a smooth property transaction.
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.
The DR 1083 form is essential for reporting the conveyance of real property interests in Colorado. However, it often works in conjunction with several other important documents. Each of these forms plays a unique role in the process, ensuring compliance with state tax laws and providing necessary information regarding the property transfer. Below are some of the key forms and documents that are commonly used alongside the DR 1083.
Understanding these forms and their purposes is crucial for anyone involved in the sale of real property in Colorado. By ensuring that all necessary documents are completed and submitted, sellers can navigate the complexities of tax obligations and avoid potential penalties. Always consult with a knowledgeable professional if you have questions about your specific situation or need assistance with the paperwork.
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The Texas Motor Vehicle Bill of Sale form is essential for anyone looking to buy or sell a vehicle in Texas, as it formalizes the transfer of ownership and prevents disputes later on. This document captures vital information about the transaction, including details about the vehicle and the price, which is crucial for both the seller and buyer. For more information on how to obtain or fill out this form, you can visit https://topformsonline.com/texas-motor-vehicle-bill-of-sale/.
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Filling out the DR 1083 form is a crucial step in the process of transferring real property in Colorado. Once completed, this form must be submitted to the Colorado Department of Revenue within 30 days of the closing date. Below are the steps to guide you through filling out the form accurately.
The DR 1083 form from Colorado is closely related to the IRS Form 1099-S. Both documents deal with the reporting of real estate transactions, specifically the sale of property. The 1099-S form is used to report the gross proceeds from the sale of real estate to the IRS, while the DR 1083 focuses on the state-level requirements in Colorado, particularly regarding tax withholding for non-residents. Both forms require details about the property, the parties involved, and the sale price, ensuring compliance with tax regulations at both federal and state levels.
Another document similar to the DR 1083 is the Colorado DR 1079 form. This form is specifically designed for reporting the amount of tax withheld during a real estate transaction. When the DR 1083 indicates that tax has been withheld, the DR 1079 must accompany it to inform the Colorado Department of Revenue about the withholding amount. While the DR 1083 provides the context of the transaction, the DR 1079 focuses solely on the financial aspect of the withholding, making both forms essential for compliance in real estate sales.
For those engaging in boat sales, understanding the necessary documentation is critical. A valuable resource is the comprehensive boat bill of sale form, which facilitates the transfer of ownership and protects the interests of both parties involved in the transaction.
The Colorado Affidavit of Residency is also akin to the DR 1083. This document serves to confirm the residency status of the transferor, which can impact tax obligations. In the DR 1083, various affirmations regarding residency are included to clarify whether the transferor is a Colorado resident or not. This distinction is crucial since non-residents may face different tax withholding requirements than residents. Both documents aim to establish the residency status of the seller in relation to the sale of property.
Similar to the DR 1083 is the Colorado Partnership Tax Return (Form 106) for partnerships. This form is relevant when a partnership is involved in the sale of real property. Just as the DR 1083 requires information about the transferor's status and tax implications, the partnership return outlines the income and deductions of the partnership for tax purposes. Both forms ensure that the appropriate tax is collected and reported, highlighting the importance of accurately representing the entity involved in the property transfer.
The Colorado Corporate Tax Return (Form 112) is another related document. When a corporation sells real estate, it must file this return to report its income and expenses. The DR 1083, in contrast, focuses on the specifics of the real estate transaction, including the withholding tax requirements for non-resident corporate sellers. Both forms serve to ensure that corporate entities comply with state tax laws, but they do so from different angles—one through income reporting and the other through transaction reporting.
The Quitclaim Deed is another document that shares similarities with the DR 1083. While the DR 1083 is focused on tax implications, the Quitclaim Deed is a legal instrument used to transfer ownership of real property. Both documents are crucial in the context of real estate transactions, as they facilitate the transfer of property and ensure that the state is informed about the change in ownership. The Quitclaim Deed does not address tax withholding directly, but it is often accompanied by the DR 1083 to ensure compliance with state tax laws.
Lastly, the Warranty Deed is comparable to the DR 1083 in that it also serves as a legal document in real estate transactions. A Warranty Deed guarantees that the seller holds clear title to the property and has the right to sell it. Like the DR 1083, it provides essential information about the property and the parties involved. While the Warranty Deed focuses on the legal transfer of ownership, the DR 1083 addresses the financial responsibilities associated with that transfer, particularly concerning tax withholding for non-residents.
The DR 1083 form is used to report information regarding the conveyance of a real property interest in Colorado. It is primarily for situations where Colorado tax may be withheld from the proceeds of the sale, particularly for nonresidents of Colorado.
The form must be filed by any transferor of Colorado real property if Colorado tax is withheld from the sale proceeds or if tax would have been withheld but for the signing of an affirmation by the transferor. This includes individuals, estates, corporations, and trusts.
The DR 1083 form requires the following information:
The DR 1083 form must be filed within 30 days of the closing date of the transaction. If Colorado tax was withheld, the form should be submitted along with the DR 1079 form.
If the DR 1083 form is not filed on time, penalties may apply. The title insurance company or the person providing closing services may be liable for a penalty of $500 or 10% of the amount required to be withheld, not exceeding $2,500.
Yes, there are exceptions. Withholding is not required if:
The title insurance company or its authorized agent is responsible for withholding the appropriate amount of tax from the proceeds of the sale. They must also complete and file the DR 1079 form if tax is withheld, along with the DR 1083 form.
The amount to be withheld is the lesser of two percent of the selling price of the property or the net proceeds due to the transferor as shown on the settlement statement.
If there are multiple transferors for the same property, a separate DR 1083 form must be filed for each transferor. However, if both transferors are spouses and are subject to the same withholding rules, they may be treated as a single transferor on one form.
Additional information and forms can be found on the Colorado Department of Revenue's website at www.taxcolorado.com. You may also contact them at (303) 238-SERV (7378) for assistance.
When filling out the DR 1083 Colorado form, it is essential to approach the task with care. Here are nine guidelines to ensure accuracy and compliance: