Instructions for south carolina sellers affidavit nonresident seller withholding code section 12 8 5 2025

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South Carolina Code Section 12-8-580 mandates that anyone purchasing real property in South Carolina from a nonresident Seller must withhold seven percent (7%) of the gain recognized on the sale by the nonresident Seller.
The withholding amount is 7% of the gain recognized on the sale by a nonresident individual, partnership, trust, or estate, or 5% of the gain recognized on the sale by a nonresident corporation or other nonresident entity, if the seller provides the buyer with a Sellers Affidavit stating the amount of gain.
The transferee must deduct and withhold a tax on the total amount realized by the foreign person on the disposition. The rate of withholding generally is 15% (10% for dispositions before Feb.
Withholding Tax is taken out of taxpayer wages to go towards the taxpayers total yearly Income Tax liability. Every employer that has an employee earning wages in South Carolina and who is required to file a Withholding return with the IRS is also a withholding agent in South Carolina.
Under the withholding statute, the purchaser is liable for the collection and payment of seven (7%) percent of the amount realized on the sale by the nonresident seller or five (5%) percent of the amount realized on the sale if the seller is a nonresident corporation.
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(A) A person hiring or contracting with a nonresident conducting a business or performing personal services of a temporary nature within this State shall withhold two percent of each payment in which the South Carolina portion of the contract exceeds or could reasonably be expected to exceed ten thousand dollars.
In South Carolina, non-residents may be subject to withholding on their gain amounts. The South Carolina Code of Laws, Section 12-8-580, says that the purchasers are to withhold 7% of gain for individuals and 5% of gain for corporations that are considered a non-resident seller.
South Carolina Taxes capital gains at the same rate as income, up to 6.4%. However, South Carolina allows taxpayers to deduct up to 44% of their long-term capital gains.

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