Non-GA Resident Withholdings
If you have any questions, please call our office at (678) 503-5000 to discuss further and/or provide additional information if you feel you are exempt from any withholdings
In Georgia, nonresident sellers of real property are generally required to withhold a 3% tax on the purchase price or the recognized gain, whichever is less. This withholding is mandated by O.C.G.A. § 48-7-128 and is typically handled by the buyer or closing attorney at the time of closing.
Key Details:
Tax Rate: 3% of the purchase price or the recognized gain, whichever is lower.
Threshold: No withholding is required if the purchase price is less than $20,000. If the purchase price exceeds $20,000 and the tax liability is less than $600, the seller may provide the buyer with a completed affidavit of gain (Form IT-AFF2 or equivalent) to avoid withholding.
Installment Sales: For sales on an installment basis, withholding is calculated on each installment payment.
Exemptions: Certain transactions may be exempt from withholding, such as sales of a seller's principal residence, transfers in lieu of foreclosure, or transfers to specific government entities.
Form G2-RP: The buyer or closing attorney must submit the withholding amount using Form G2-RP.
It's important for nonresident sellers to consult with a tax professional or real estate attorney to understand their specific withholding obligations and potential exemptions.