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What is the procedure for a non-exempt transferor with an exempt transfer where withholding is not required?

April 26, 2017exempt non-exempt procedure transfer transferor withholding

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What is the procedure for a non-exempt transferor with an exempt transfer where withholding is not required?

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If withholding is not required because the non-exempt transferor is claiming that the sale will not result in any Oregon tax, they must complete Part A of Form WC and give a complete explanation of why the gain is not taxed. The transferor must include the amount of gain or loss, the related IRC, and any other details explaining their determination. If the seller is claiming there will be no tax on the gain because all of the gain qualifies for the federal exclusion for sale of a principal residence under IRC § 121, the seller can complete Part A of Form WC or give you a written assurance as described on page 4 of the instructions for Withholding on Real Property Conveyances.