West Virginia Non-Resident Sale Of Real Estate
West Virginia is a beautiful state with a diverse range of real estate opportunities, making it an attractive destination for non-resident investors. However, non-residents looking to sell their West Virginia real estate must be aware of the state's specific regulations and requirements.
What is a Non-Resident Sale of Real Estate?
A non-resident sale of real estate refers to a situation where a property owner who is not a resident of West Virginia sells their real estate property located within the state. Non-resident property owners may include individuals, corporations, and partnerships.
West Virginia Non-Resident Real Estate Sales Tax
Non-residents selling real estate in West Virginia are subject to a withholding tax of 2.5% of the gross sales price. This tax is withheld at the time of sale by the buyer or their representative and is paid to the West Virginia State Tax Department.
However, if the seller can show that the actual tax liability is less than the amount withheld, they may file a claim for refund with the State Tax Department.
West Virginia Non-Resident Real Estate Withholding Requirements
Buyers or their representatives are required to withhold 2.5% of the gross sales price of the property and submit it to the West Virginia State Tax Department within 20 days of the sale. Failure to comply with this requirement may result in penalties and interest charges.
West Virginia Non-Resident Real Estate Withholding Exemptions
There are some exemptions to the withholding requirement for non-resident real estate sales in West Virginia. These exemptions include:
- Properties sold for less than $100,000
- Properties sold at a loss
- Properties sold by a non-resident who can provide a certification from the State Tax Department stating that they are in compliance with West Virginia's tax laws
West Virginia Non-Resident Real Estate Transfer Requirements
Non-resident property sellers must also comply with West Virginia's real estate transfer requirements. These requirements include:
- Providing the buyer with a written disclosure of the property's condition
- Obtaining a certificate of compliance from the State Tax Department
- Providing the buyer with a deed that meets West Virginia's legal requirements
West Virginia Non-Resident Real Estate Capital Gains Tax
Non-residents selling real estate in West Virginia may also be subject to capital gains taxes. The capital gains tax rate for non-residents is 6.5% of the gain realized from the sale.
Conclusion
Non-resident real estate sales in West Virginia require compliance with specific regulations and requirements. Non-resident property sellers must be aware of the state's withholding, transfer, and capital gains tax requirements to avoid penalties and ensure a smooth sale process.