What does REW mean in GENERAL

Real Estate Withholding is a withholding procedure in which a portion of the purchase price of certain types of real estate transactions is required to be withheld and paid directly to the state tax authority. The buyer may be obligated to withhold if the state has determined that the seller has not previously reported or properly accounted for all taxes due on the property.

Real Estate Withholding applies when certain real estate transactions take place, such as sales or transfers of land, buildings, or manufactured homes.

The amount that must be withheld depends on several factors, including the type of transaction, the purchase price, and other applicable state laws. Generally speaking, buyers are required to withhold up to 5% of the purchase price of certain types of real estate transactions.

The buyer is typically responsible for paying any necessary Real Estate Withholding.

If you fail to pay your Real Estate Withholding you may be subject to penalties and interest imposed by your state's tax authority. Additionally, you may also be liable for additional taxes due and owing on the property that was sold or transferred.

Yes, there are exemptions from Real Estate Withholdings depending on certain qualifying factors associated with the transaction. For example, some states provide exemptions from withholding if either party qualifies as a farm-type organization or a qualified trade or business under applicable federal or state law.

Yes, incorrect reporting can result in significant problems both with common auditing processes as well as potential legal action taken against parties involved in an incorrect filing/reporting incident concerning real estate withholdings. As such it’s important parties abide by all applicable laws when dealing with withholdings related to real estate transactions.