A. General: In accordance with the above, the buyer must deduct and withhold six percent (6%) of the net proceeds or gain to the seller if the seller is a nonresident individual, estate, partnership or trust and nine percent (9%) of the net proceeds or gain if the seller is a nonresident corporation.

Can a lien be deducted from the sale of a house in Rhode Island?

Only mortgages and liens on the property being sold may be deducted from the sales price.

How is net proceeds calculated in Rhode Island?

If there are multiple sellers, the buyer must compute and withhold for each seller separately. 1. Net Proceeds Method: (a) Joseph Smith and Andrew David (both nonresidents) are selling a summer house in Rhode Island for $175,000, the proceeds to be shared equally]

What do you need to know about installment sales?

The information which must be supplied as part of the form RI 71-3 Election for the installment sales method must be supplied under penalties of perjury by the seller, the seller’s certified public accountant, licensed public accountant or attorney and must include the following: 1. Name, address and number (FEI # or SS#) of each seller; and

How much does it cost to live in Narragansett RI?

The average price of a home in Ashaway is around $253,000, which by Rhode Island’s standards is a bargain. Narragansett is a popular little tourist town that sees visitors from not just Rhode Island, but the entire country during the summer months.

What is a nonresident corporation in Rhode Island?

A. Nonresident corporation for purposes of this regulation, means a corporation that is neither incorporated in this state nor authorized by the Secretary of State, Board of Bank Incorporation or Insurance Division of the Department of Business Regulation to do business in this state.