Part I—To Be Completed by the Buyer

Line 6. Enter the amount subject to withholding, generally the amount realized on the transfer.

Line 11c. Enter the amount subject to withholding multiplied by 21% (0.21) (35% (0.35) for distributions made before January 1, 2018). See the discussion of various section 1445(e) transactions under Entities Subject to Section 1445(e) , earlier.

Generally, this is the rate of withholding for transactions required to be reported under section 1445(e) in Part II. However, see the discussion of various section 1445(e) transactions under Entities Subject to Section 1445(e), earlier.

Line 7. Withholding tax liability. Enter an amount on only one of line 7a, 7b, or 7c.

Line 7a. Enter the amount subject to withholding multiplied by 10% (0.10).

Amounts entered on line 7a include the following.

Withholding under section 1445(a) for the purchase of a residence with an amount realized of more than $300,000, but less than or equal to $1 million. Generally, no withholding is required for the purchase of a residence if the amount realized is $300,000 or less. For more information, see Exceptions to Section 1445 Withholding , earlier.
Any dispositions of property prior to February 17, 2016, subject to a 10% rate of withholding under section 1445(a). Line 7b. Enter the amount subject to withholding multiplied by 15% (0.15).

Generally, this is the rate of withholding for transactions required to be reported under section 1445(a) in Part I. Include withholding for the purchase of a residence with an amount realized of more than $1 million.

Line 7c. If withholding is at a reduced rate, enter the adjusted withholding amount, and check the box. Attach a copy of the withholding certificate. See Exceptions to Section 1445 Withholding , earlier.

Line 8. Enter the amount you actually withheld.

Example 1. Beyond Corp, a corporation, purchases a USRPI from Frank, a foreign person. On settlement day, the settlement agent pays off existing loans, withholds 15% of the amount realized by Frank on the sale, and disburses the remaining amount to Frank. Beyond Corp, not the settlement agent, is the withholding agent and must complete Form 8288 and Form 8288-A.