The DR 1083 Colorado form serves as a crucial document for reporting the conveyance of real property interests within the state. This form is essential for both individuals and entities involved in real estate transactions, ensuring compliance with Colorado tax regulations. To facilitate your transaction, fill out the form by clicking the button below.
The DR 1083 form is a critical document for anyone involved in the sale of real property in Colorado. It serves to provide the Colorado Department of Revenue with essential information regarding the conveyance of a real property interest. The form requires details about the transferor, including their name, address, and whether they are an individual, estate, corporation, or trust. It also captures the specifics of the property sold, such as the type, selling price, and date of closing. Importantly, the form addresses the withholding tax that may apply to the transaction, particularly for non-residents of Colorado. Transferors must indicate if Colorado tax was withheld and, if not, provide a reason for the exemption. The form also includes affirmations that can exempt the transferor from withholding, such as affirming residency or the nature of the business. Timely submission of the DR 1083, along with any required accompanying forms, is necessary to comply with state regulations, and failure to do so may result in penalties. Understanding the requirements and implications of the DR 1083 is essential for both buyers and sellers in the Colorado real estate market.
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 an essential step in reporting the conveyance of a real property interest in Colorado. Once completed, this form should be submitted to the Colorado Department of Revenue along with any necessary accompanying documents. Be sure to have all required information at hand before starting the process to ensure a smooth completion.
After completing the form, file it along with the DR 1079, if required, with the Colorado Department of Revenue within 30 days of the closing date. This step is crucial to ensure compliance and avoid any potential penalties.
The DR 1083 form is used to provide information regarding the conveyance of a real property interest in Colorado. It is particularly important for reporting transactions that may be subject to withholding tax, especially when the transferor is a nonresident. This form ensures compliance with Colorado tax laws and helps in the accurate reporting of income from real estate sales.
The form must be filed by the transferor of the property or their representative, such as a title insurance company or attorney, when Colorado tax is withheld from the sale proceeds. If the transferor is an individual, estate, or trust, they are subject to withholding if they have a non-Colorado address. Corporations must also file if they do not have a permanent place of business in Colorado after the transfer.
The form requires several key pieces of information, including:
Generally, if the selling price of the property is $100,000 or more and the transferor is a nonresident, a withholding tax will apply. The withholding amount is typically the lesser of 2% of the selling price or the net proceeds due to the transferor. However, there are exceptions where withholding may not be required, such as if the transferor is an individual with a Colorado address or if the property sold is not more than $100,000.
The withholding amount is calculated based on the selling price of the property or the transferor's interest. Specifically, it is the lesser of:
This ensures that the amount withheld is fair and proportional to the transaction.
If the DR 1083 form is not filed within 30 days of the closing date, the title insurance company or closing agent may face penalties. The penalty can be up to $2,500 or 10% of the amount that should have been withheld, whichever is greater. Timely filing is crucial to avoid these financial repercussions.
Additional information and resources about the DR 1083 form can be found on the Colorado Department of Revenue's website at www.taxcolorado.com. For direct inquiries, you can also call (303) 238-7378 for assistance regarding the form and its requirements.
Incorrect Personal Information: Many individuals fail to provide accurate names and addresses. Ensure that the transferor's last name, first name, middle initial, and address are correct and match the information on the federal Form 1099-S.
Missing Signatures: Some forms are submitted without the necessary signatures. Both the transferor and spouse (if applicable) must sign the form to validate the information provided.
Improper Selection of Transferor Type: Selecting the wrong type of transferor can lead to complications. Carefully check the box that corresponds to the transferor's status, whether it be an individual, estate, corporation, or trust.
Failure to Report Selling Price Accurately: Individuals often miscalculate the selling price of the property. This figure should reflect the total consideration received, including cash and any liabilities assumed by the transferee.
Neglecting to Check Withholding Box: Some transferors forget to indicate if Colorado tax was withheld. This information is crucial for proper processing and should be clearly marked on the form.
The DR 1083 form is a crucial document used in Colorado for reporting the conveyance of real property interests. It is often accompanied by several other forms that provide additional information or affirmations related to the transaction. Each of these documents plays a specific role in ensuring compliance with state tax regulations and facilitating the proper processing of the property transfer.
In conclusion, the DR 1083 form is part of a broader set of documents that work together to ensure proper reporting and compliance in real estate transactions in Colorado. Each accompanying form serves a distinct purpose, helping to clarify residency, business status, and tax obligations, ultimately facilitating a smoother transaction process.
The DR 1083 Colorado form is similar to the IRS Form 1099-S, which is used to report the sale of real estate. Both forms require information about the transferor, the property being sold, and the sale price. The 1099-S is submitted to the IRS to report the transaction for federal tax purposes, while the DR 1083 serves a similar purpose at the state level for Colorado tax obligations. Both forms are critical for ensuring that the correct taxes are withheld or reported, thus preventing potential tax liabilities for the seller.
Another document that parallels the DR 1083 is the Colorado Form DR 1079, which is used to report the amount of tax withheld from the sale of real property. When Colorado tax is withheld, the DR 1079 must accompany the DR 1083 when submitted to the Colorado Department of Revenue. This form specifies the amount withheld and helps ensure compliance with state tax laws. Both forms work together to provide a complete picture of the transaction and the tax implications involved.
The IRS Form 8288 is also comparable to the DR 1083. This form is used for withholding tax on dispositions of U.S. real property interests by foreign persons. Similar to the DR 1083, Form 8288 requires details about the transferor and the property sold. The primary difference lies in the residency status of the transferor; while the DR 1083 is for residents or entities in Colorado, Form 8288 addresses transactions involving non-resident aliens, thus serving a different demographic but with similar reporting requirements.
The Colorado Form DR 1102 is another document that shares similarities with the DR 1083. This form is used for reporting the sale of a business or business assets, including real property. Both forms require information about the seller, the sale price, and any applicable withholding tax. While the DR 1083 focuses specifically on real estate transactions, the DR 1102 encompasses a broader range of business sales, making it essential for business owners to understand both forms when navigating tax obligations.
Additionally, the IRS Form 8949 can be likened to the DR 1083. This form is used to report sales and other dispositions of capital assets, including real estate. Both forms require a detailed account of the transaction, including the selling price and the basis for the asset. While the DR 1083 is specific to Colorado's tax requirements, Form 8949 is used for federal tax reporting, thus highlighting the dual obligations sellers face when disposing of real property.
Lastly, the Colorado Form DR 0100 serves a similar purpose in terms of reporting income tax withholding for various types of income, including gains from property sales. Like the DR 1083, this form is used to ensure that the appropriate amount of tax is withheld at the time of the transaction. Both forms aim to provide transparency and accountability in tax reporting, ensuring that the state collects the necessary revenue while protecting the interests of taxpayers.
When filling out the DR 1083 Colorado form, keep these important tips in mind:
Misconceptions about the DR 1083 Colorado form can lead to confusion and potential issues during property transactions. Here are ten common misconceptions clarified:
Understanding these misconceptions can help ensure compliance with Colorado's tax regulations and facilitate smoother property transactions.
When filling out and using the DR 1083 form in Colorado, several key points should be noted: