Selling your home can be a very stressful yet exciting time. While you are trying to get the best price for your home, it also means that you are moving into a new one. Many people think that if you do not have a Social Security Number, you will not be eligible to buy or sell a home. Luckily, if you have an Individual Taxpayer Identification Number, or ITIN, you can still qualify.
An ITIN is also known as a W-7 form, a number issued by the IRS to specific non-residents and residents who are required to have a U.S. taxpayer identification number for U.S. tax purposes but are not eligible for a Social Security Number. ITIN’s can be issued regardless of a person’s immigration status since both non-resident and resident aliens can have filing and reporting requirements under the U.S. Internal Revenue Code.
If you are selling your home as a non-resident, the law requires that you remit a 10 percent withholding tax at the close of the escrow. If you do not have an ITIN, there is no way to make sure that the funds from the home safe will be credited as being remitted. Also, if you have reduced withholding, or have had a loss, and complete a 593E form, it would be voided, unless you have an ITIN, then the escrow holder will do the withholding, no matter the loss.
It is important to keep in mind that it can take up to six weeks before you receive an ITIN. If you have not received your ITIN in six weeks, make sure to call the IRS to receive the status of your application.
For all of your escrow needs when you are buying or selling a home, contact Brighton Escrow in Hermosa Beach, California.