Your Key to International Investing Success

Caliber Companies 7077 E. Marilyn Dr., Bldg. 1, Ste. 100

Scottsdale, AZ 85254 www.CaliberCo.com

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ELLIOT

858 W Elliot Road, Suite 105 Tempe, AZ 85284

480.755.0220 Office 866.431.0062 FAX

2 ARROWHEAD

15396 N 83rd Avenue, Suite 100B Peoria, AZ 85381

623.412.4393 Office 623.412.2823 FAX

HIGLEY

4864 E Baseline Road, Suite 107 Mesa, AZ 85206

480.830.9503 Office 866.624.8861 FAX

IRON

540 W Iron Avenue, Suite 109 Mesa, AZ 85210

480.969.1819 Office 866.229.7439 FAX

KIERLAND

14850 N Scottsdale Road, Ste 160 Scottsdale, AZ 85254 480.368.1500 Office 866.910.8015 FAX

PALM VALLEY

1626 N Litchfield Road, Suite 140 Goodyear, AZ 85395 623.536.7688 Office 623.536.7917 FAX VINEYARD

2152 S Vineyard, Suite 109 Mesa, AZ 85210

480.539.5232 Office 866.835.9571 FAX

WARNER

2033 E Warner Road, Suite 104 Tempe, AZ 85284

480.755.0950 Office 480.755.0916 FAX

1 NORTHSIGHT

14500 N Northsight Blvd, Suite 112 Scottsdale, AZ 85260 480.607.7308 Office 866.446.5126 FAX

WICKENBURG

186 N Tegner Wickenburg, AZ 85390

928.684.2466 Office 928.684.2735 FAX “Commitment to Service”

Arizona Revised Statute A.R.S. 6-843 requires that escrow agents not disburse money from an escrow account until funds related to the transactions have been deposited and available. The good funds law specifies which forms of payment are acceptable for deposit. Available days are considered business days. A business day is defined as a calendar day other than Saturdays, Sundays and certain major holidays. The chart below summarizes the “availability” of most common types of deposits.

Same Day*

Next Day*

2nd Day*

5th Day*

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DEPOSIT TYPE

Bank Wire, Electronic Payment/Transfer

Cashier’s, Certified or Teller’s Check

Official Checks - Drawn on Local** FDIC Institution

Official Checks - Drawn on Non-Local and/or Non-FDIC

U.S. Treasury Checks or Postal Money Order

All Other Money Orders (Non-U.S. Postal)

Federal: Reserve, Credit Union & Home Loan Bank Checks

Local** State, County & Municipal Government Checks (must be in-state & local**)

Non-Local State, County & Municipal Government Checks (5th Day) Local** Checks Including: Personal, Corporate, Credit Union, Money Market & Traveler’s Checks Non-Local** Checks including: Personal, Corporate, Credit Union, Money Market & Traveler’s Checks

On-us Checks***

*Business Day: Funds are potentially available on the Business Day indicated above. A Business Day is defined as a calendar day other than Saturday, Sunday, and excludes most major holidays. If January 1, July 4, November 11, or December 25 fall on a Sunday, the next Monday is excluded from the definition of a business day. NOTE: Individual banks may require additional “hold” periods longer than shown above. **Local: A Check is considered “Local” when it is drawn against a bank located in the same processing region as the depository bank. The check processing region for the State of Arizona is the Los Angeles Region. Any check with a four-digit ABA Number beginning with “12” or “32” is Local. ***On-us Checks: Next day availability is dependent on the check being drawn against the same bank or branch as the depository bank and is the same check processing region, meaning the ABA Numbers must begin with “12” or “32” .

What is an Escrow Officer? An escrow officer is a neutral third party agent that protects the interest of all parties to the transaction.

What your Escrow Officer does for you:

• Receives and holds all funds for disbursement upon escrow closing.

• Manages funds and/or documents in accordance with escrow instructions.

• Disburses funds such as recording fees, payoffs, seller proceeds, etc.

• Responds to requests from the principals and communicates with all parties.

• Closes the escrow only when all terms and conditions have been met. What your Escrow Officer does not do:

• Provide legal advice

• Negotiate terms of the transaction

• Provide investment advice

What is an Escrow? Escrow is the deposit of funds and/or documents with a third party, by one party for delivery to another party with a third party to be held until the fulfillment of certain conditions. Arizona, as well as many of the Western states, use escrow agents as settlement agents. In most of the rest of the country, attorneys handle the closing and settlement process.

What should a Buyer expect?

Documents Buyers should expect to execute various documents throughout the course of the transaction. One of the documents Buyers are asked to complete is an Identity Statement. An Identity Statement enable the title and escrow company to distinguish the Buyer’s name from others with identical names during a records search. Loans If the Buyer does not plan to pay cash, assume the seller’s loan, or have a seller financing agreement, they will need to apply for a new loan. Buyers may wish to get pre-qualified for a loan prior to making an offer on a property to expedite the purchase process. Acknowledgement Buyers should expect to receive various documents that will require an acknowledgement, such as: ⇒ Seller’s Property Disclosure Statement ⇒ Covenants, Conditions and Restrictions (CC&R’s) ⇒ Home Owner’s Association Documents (HOA) ⇒ Disclosure of Information on Lead-Based Paint and

Lead-Based Paint Hazards ⇒ Planned Unit Development (PUD) ⇒ Inspections such as property, termite and septic Title Commitment Buyer will receive a copy of the preliminary title report/commitment once the title search has been completed. The purpose of the title commitment is to locate potential problems so that they can be corrected prior to closing, and to allow the transfer of ownership to proceed.

“Commitment to Service”

What is Title Insurance? A Title Insurance policy protects you against problems affecting the title to your home or property. Basically, there are two types of title insurance - an Owner's Policy, and a Loan Policy. The Owner's Policy protects you, the homeowner, for your investment in the property for as long as you or your heirs have an interest in the property. The Loan Policy protects the lender for the amount of the loan. Before a title policy is issued, a title search of the public records is made in an effort to locate potential problems so that they can be corrected and the transfer can proceed (one third of all transactions reveal a title or public record defect). While most problems can be located in a title search by skilled professionals, there can be hidden hazards that even the most thorough search will not reveal. Examples include:

• Someone other than you owns your property

• Forgeries in the chain of title

• A claim by a previously undisclosed relative of a former owner

• Unpaid taxes and assessments

• Unpaid judgments

• Unpaid deeds of trusts and mortgages

• A title search also discloses easements, rights-of-way, restrictions, and mineral reservations among other matters

In addition to the standard title policies just described, Pioneer Title Agency also handles the following title insurance products:

• ALTA Homeowner's Policy • Extended Owners and Lenders Policies • Other Lender Policies • Trustee's Sale Guarantees • Judicial Litigation Guarantee Reports

Remember: Title Insurance protects you against the potential loss of your most valuable asset - your home or property.

IMPORTANT NOTE: Arizona is a community property state. Property acquired by a husband and wife is presumed to be community property unless legally specified otherwise. Title may be held as “Sole and Separate.” If a married person acquires title as sole and separate, his or her spouse must execute and record with the county Clerk and Recorder a Disclaimer Deed to avoid the presumption of community property. Parties may choose to hold title in the name of a corporation, limited liability company, partnership (general or limited), a trust, or other entity. Each method of taking title has certain significant legal and tax implications. Obtain the advice of an attorney , tax consultant, or other qualified professional.

Community Property with

Right of Survivorship

Community Property

Tenancy in

Common

Joint Tenancy with

Right of Survivorship

PARTIES Any number of persons may be joint tenants.

PARTIES Requires a valid marriage.

Only husband & wife.

PARTIES Any number of persons

may be tenants in common.

PARTIES Requires a valid marriage.

Only husband & wife.

TITLE One joint tenant can

sell their joint interest.

TITLE One spouse cannot partition property by selling their interest.

TITLE Each owner can convey, mortgage or devise their portion of the property.

TITLE One spouse cannot partition property by selling their interest.

TAX BASIS Deceased tenant’s share is entitled to a “stepped up” tax basis at date of death.

TAX BASIS Both halves of property are entitled to a “stepped up” tax basis at date of death.

TAX BASIS Each share has

its own tax basis.

TAX BASIS Both halves of property are entitled to a “stepped up” tax basis at date of death.

SUCCESSOR Last survivor

owns property.

SUCCESSOR Tenancy in Common

between devisee & survivor results if passing by will.

SUCCESSOR Heirs or devisee become

tenants in common.

SUCCESSOR Estate passes to surviving spouse outside of probate.

DEATH Estate passes to

surviving joint tenants outside of probate.

DEATH The estate, upon death, must be cleared through probate or adjudication.

DEATH Decedent’s interest passes by will to heirs or devisee.

No survivorship rights.

DEATH No court action required

to clear title upon death of first spouse.

POSSESSION Equal right of possession requires all joint tenants

to convey/encumber.

POSSESSION Spouses have equal

management requiring both to convey/encumber.

POSSESSION Equal right of possession

requires all owners to convey/encumber whole.

POSSESSION Spouses have equal

management requiring both to convey/encumber.

DIVISION Ownership interest must be

equal and undivided.

DIVISION Each spouse holds and undivided 1/2 interest. Ownership is equal.

DIVISION Ownership can be divided

into equal or unequal (fractional) interests.

DIVISION Each spouse holds and undivided 1/2 interest. Ownership is equal.

PURCHASER Purchaser becomes a tenant in common with

existing property owners.

PURCHASER Purchaser acquires whole title of community property,

not partial or one-half.

PURCHASER Purchaser becomes a tenant in common with

existing property owners.

PURCHASER Purchaser acquires whole title of community property,

not partial or one-half.

F.I.R.P.T.A. = Foreign Investment in Real Property Tax Act of 1980

For additional FIRPTA requirements, publications and forms go to www.irs.gov.

• If a Buyer purchase a home for $300,000 or less AND intends to occupy the property as their primary residence, withholding is not required on the sales proceeds.

• Otherwise, FIRPTA requires a 10% withholding on the gross proceeds.

• Unless, Form 8288-B is filed, then 10% withholding on the “adjusted gain.”

• Form W-7: Application for IRS Individual Taxpayer Identification Number (ITIN) should be filed with 8288-B.

Additional Information Specific to Canadians: • Canadians do not have the option of deferring taxes in a

tax-free exchange or in an installment sale. • There is no $250,000/$500,000 exemption for Canadians. • Canadians must file U.S. Non-resident tax return (1040NR)

⇒ Due after sale ⇒ Due annually if property is a rental

What restrictions are there for Canadian buyers purchasing homes in Arizona?

None. There are no restrictions on foreign nationals buying U.S. or Arizona property.

Can Arizona lenders provide financing for Canadian buyers?

Yes, it’s done all the time. Your real estate agent can help you find a lender who has experience in lending to foreign nationals.

What are the fees associated with BUYING a property in Arizona?

Arizona does not have a real estate transfer tax.

Your “closing cost” will vary from lender to lender, and from one loan program to another. Some of the fees associated with your loan are: home inspection, termite inspection, appraisal, escrow fee, title insurance, county document recording fees, and if the home has a Home Owners Association (HOA), additional HOA fees.

In addition, at closing you will pay for some future expenses in advance. These “pre-paids” may include property taxes and homeowners insurance.

Attorneys are not typically involved in Arizona residential real estate transactions, so that is an expense you will not have when purchasing real estate in Arizona.

Will Canadian buyers be subject to capital gains tax when they sell their Arizona property?

Yes, foreign nationals are subject to U.S. capital gains taxes on real estate sales. Because the U.S. Internal Revenue Service (IRS) can’t easily go after foreign nationals to collect this capital gains tax, there are special U.S. tax “withholding” requirements when foreign nationals sell real estate.

The Foreign Investment in Real Estate Property Tax Act (FIRPTA) imposes U.S. tax on income and gains from real estate owned by “non-resident aliens” at the same graduated rates applicable to U.S. persons. A non-resident alien is someone who has not been granted permanent resident status in the U.S.

Typically, when a non-resident alien sells U.S. real estate, ten percent (10%) of the purchase price will be “withheld” for potential taxes. The seller may, in fact, owe no taxes...or the seller may, in fact, owe more than the ten percent (10%) withheld.

The seller will want to file a U.S. income tax return at the end of the year so any overpayment to the IRS will eventually be returned to the non-resident alien seller.

Also of interest, many homes that are sold for les than $300,000 are not subject to this ten percent (10%) withholding, although the seller is still obligated to pay the full amount of any capital gains tax due.

Interested buyers should contact an accountant or lawyer for details.

Will Canadians pay tax on rental income generated from Arizona investment property?

This is complex but, yes, the IRS will tax income from real estate owned by non-resident aliens at the same graduated rates applicable to U.S. persons. Interested buyers should contact an accountant or lawyer for details.

Form W-8BEN(Rev. February 2006)

Department of the TreasuryInternal Revenue Service

Certificate of Foreign Status of Beneficial Ownerfor United States Tax Withholding

� See separate instructions.� Give this form to the withholding agent or payer. Do not send to the IRS.

OMB No. 1545-1621

Do not use this form for: Instead, use Form:

● A foreign partnership, a foreign simple trust, or a foreign grantor trust (see instructions for exceptions) W-8ECI or W-8IMY● A foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization,

foreign private foundation, or government of a U.S. possession that received effectively connected income or that isclaiming the applicability of section(s) 115(2), 501(c), 892, 895, or 1443(b) (see instructions) W-8ECI or W-8EXP

● A person acting as an intermediary W-8IMY

● A person claiming that income is effectively connected with the conductof a trade or business in the United States W-8ECI

Part I

Part II

Identification of Beneficial Owner (See instructions.)1

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Name of individual or organization that is the beneficial owner

Type of beneficial owner:

Country of incorporation or organization

Permanent residence address (street, apt. or suite no., or rural route). Do not use a P.O. box or in-care-of address.

City or town, state or province. Include postal code where appropriate. Country (do not abbreviate)

U.S. taxpayer identification number, if required (see instructions) Foreign tax identifying number, if any (optional)

Individual Corporation Partnership Simple trust

Mailing address (if different from above)

City or town, state or province. Include postal code where appropriate. Country (do not abbreviate)

Claim of Tax Treaty Benefits (if applicable)I certify that (check all that apply):

The beneficial owner is a resident of within the meaning of the income tax treaty between the United States and that country.

If required, the U.S. taxpayer identification number is stated on line 6 (see instructions).

The beneficial owner is not an individual, derives the item (or items) of income for which the treaty benefits are claimed, and, ifapplicable, meets the requirements of the treaty provision dealing with limitation on benefits (see instructions).

The beneficial owner is not an individual, is claiming treaty benefits for dividends received from a foreign corporation or interest from aU.S. trade or business of a foreign corporation, and meets qualified resident status (see instructions).

The beneficial owner is related to the person obligated to pay the income within the meaning of section 267(b) or 707(b), and will fileForm 8833 if the amount subject to withholding received during a calendar year exceeds, in the aggregate, $500,000.

Under penalties of perjury, I declare that I have examined the information on this form and to the best of my knowledge and belief it is true, correct, and complete. Ifurther certify under penalties of perjury that:1 I am the beneficial owner (or am authorized to sign for the beneficial owner) of all the income to which this form relates,2 The beneficial owner is not a U.S. person,3 The income to which this form relates is (a) not effectively connected with the conduct of a trade or business in the United States, (b) effectively connected but isnot subject to tax under an income tax treaty, or (c) the partner’s share of a partnership’s effectively connected income, and4 For broker transactions or barter exchanges, the beneficial owner is an exempt foreign person as defined in the instructions.

Sign Here � Signature of beneficial owner (or individual authorized to sign for beneficial owner) Date (MM-DD-YYYY)

For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 25047Z Form W-8BEN (Rev. 2-2006)

� Section references are to the Internal Revenue Code.

a

b

c

d

e

SSN or ITIN EIN

Capacity in which acting

Disregarded entity

Certification

9

Special rates and conditions (if applicable—see instructions): The beneficial owner is claiming the provisions of Article of the

treaty identified on line 9a above to claim a % rate of withholding on (specify type of income): .

Explain the reasons the beneficial owner meets the terms of the treaty article:

10

Government International organization

Central bank of issue Tax-exempt organization

Part IV

Part III Notional Principal Contracts11 I have provided or will provide a statement that identifies those notional principal contracts from which the income is not effectively

connected with the conduct of a trade or business in the United States. I agree to update this statement as required.

● A U.S. citizen or other U.S. person, including a resident alien individual W-9

Private foundation

Note: These entities should use Form W-8BEN if they are claiming treaty benefits or are providing the form only toclaim they are a foreign person exempt from backup withholding.

Note: See instructions for additional exceptions.

Grantor trust EstateComplex trust

Furthermore, I authorize this form to be provided to any withholding agent that has control, receipt, or custody of the income of which I am the beneficial owner orany withholding agent that can disburse or make payments of the income of which I am the beneficial owner.

8 Reference number(s) (see instructions)

Printed on Recycled Paper

Application for Withholding Certificate for Dispositions

by Foreign Persons of U.S. Real Property Interests

Form 8288-B OMB No. 1545-1060

(Rev. November 2006)

Department of the TreasuryInternal Revenue Service

Identification number Name of withholding agent (see instructions) 4

Address where you want withholding certificate sent (street address, apt. or suite no., P.O. box, or rural route number)

City, state or province, and country (if not U.S.). Include ZIP code or postal code where appropriate.

Applicant is:

Transferee

1 Identification number Name of transferor (attach additional sheets if more than one transferor)

Street address, apt. or suite no., or rural route. Do not use a P.O. box.

City, state or province, and country (if not U.S.). Include ZIP code or postal code where appropriate.

Identification number Name of transferee (attach additional sheets if more than one transferee) 2

6 Description of U.S. real property transaction: Date of transfer (month, day, year) (see inst.)

Contract price $

b a

Type of interest transferred:

Associated personal property Domestic U.S. real property holding corporation

Real property

c

Use of property at time of sale:

Personal

Rental or commercial

Other (attach explanation)

d

Adjusted basis $

e

Location and general description of property (for a real property interest), description (for associated personal property), orthe class or type and amount of the interest (for an interest in a U.S. real property holding corporation). See instructions.

f

Check the box to indicate the reason a withholding certificate should be issued. See the instructions for information that mustbe attached to Form 8288-B.

7

The transferor is exempt from U.S. tax or nonrecognition treatment applies.

a The transferor’s maximum tax liability is less than the tax required to be withheld.

b The special installment sales rules described in section 7 of Rev. Proc. 2000-35 allow reduced withholding.

c

8 No Yes Does the transferor have any unsatisfied withholding liability under section 1445?

9 No Yes Is this application for a withholding certificate made under section 1445(e)? If “Yes,” check the applicable box in a and the applicable box in b below.

1445(e)(5)

1445(e)(3)

1445(e)(2)

1445(e)(1)

Type of transaction:

a

Other person required to withhold. Specify your title (e.g., trustee) ©

Taxpayer

Applicant is:

b

Under penalties of perjury, I declare that I have examined this application and accompanying attachments, and, to the best of my knowledge and belief, they are true,correct, and complete.

Date Title (if applicable) Signature

For Privacy Act and Paperwork Reduction Act Notice, see the instructions. Form 8288-B (Rev. 11-2006)

Transferor

Cat. No. 10128Z

© Please type or print.

Street address, apt. or suite no., or rural route. Do not use a P.O. box.

City, state or province, and country (if not U.S.). Include ZIP code or postal code where appropriate.

Phone number (optional)

( )

3

a b

Name of estate, trust, or entity (if applicable) c Identification number d

5

See the instructions for information required to be attached.

For the 3 preceding tax years:

g

(1)

(2)

Were U.S. income tax returns filed relating to the U.S. real property interest? If “Yes,” when and where were those returns filed? ©

No Yes

No Yes Were U.S. income taxes paid relating to the U.S. real property interest? If “Yes,” enter the amount of tax paid for each year ©

1445(e)(6)

Page 2 Form 8288-B (Rev. 11-2006)

2. Withhold 10% or lower amountdetermined by the IRS (or the amount theIRS determines to be appropriate undersection 1445(e)) of each subsequentpayment and the interest on the deferredtax liability.

General Instructions

Section references are to the InternalRevenue Code unless otherwise noted.

3. Use Forms 8288 and 8288-A (relatingto withholding on dispositions by foreignpersons of U.S. real property interests) topay over all amounts withheld. Theidentification number of the transferor (orinterest holder subject to withholding undersection 1445(e)) must be included on Forms8288 and 8288-A.

The IRS will normally act on anapplication within 90 days of receipt of allinformation necessary to make a properdetermination. The IRS will determinewhether withholding should be reduced oreliminated or whether a withholdingcertificate should not be issued.

4. Notify the IRS before the disposition orencumbrance of the U.S. real propertyinterest (of the installment obligation undersection 1445(e)), and when it occurs, payover the remaining amount to be withheld.

Any withholding certificate issued by theIRS applies only for the limited purpose ofdetermining the withholding obligationunder section 1445 and does not apply toany substantive issue that may arise inconnection with the transfer. Theacceptance by the IRS of any evidencesubmitted in connection with thisapplication is not binding on the IRS for anypurpose other than issuing the withholdingcertificate. The information submitted insupport of the application may be subjectto verification by the IRS prior to issuanceof a withholding certificate.

5. Continue to withhold under a reducedwithholding certificate until an amendedcertificate is issued, even if the transferorpledges the installment obligation inexchange for all or part of the proceeds dueon the obligation and includes in grossincome under section 453A(d) the netproceeds of the secured indebtedness. Where to send applications for awithholding certificate. Form 8288-B andother applications for a withholdingcertificate must be sent to the Director,Philadelphia Service Center, P.O. Box21086, FIRPTA Unit, Philadelphia, PA19114-0586. After 2006, send these itemsto Ogden Service Center, P.O. Box 409101,Ogden, UT 84409.

If you receive a withholding certificatefrom the IRS and withholding is stillrequired, a copy of the withholdingcertificate must be attached to Form 8288,U.S. Withholding Tax Return forDispositions by Foreign Persons of U.S.Real Property Interests.

Purpose of form. Use Form 8288-B toapply for a withholding certificate to reduceor eliminate withholding on dispositions ofU.S. real property interests by foreignpersons, but only if the application is basedon:

Installment sales. A transferee is requiredto withhold on the full sales price regardlessof the amount of the payment. However, ifthe transferor is not a dealer and will reportgain using the installment method undersection 453, a withholding certificateallowing reduced withholding may beobtained. Any withholding certificate basedon the installment sale method will providefor payment of interest on the deferred taxliability under section 453A(c) whenapplicable.

Specific Instructions Complete all information for each line. Anapplication that is not substantiallycomplete when submitted will be rejected.For example, an application without aspecific or estimated date of transfer willnot be considered to be substantiallycomplete.

Do not use this form for applications:

For installment sales subject towithholding under section 1445(a) or (e), theIRS will consider applications for awithholding certificate based on thetransferee’s (or entity’s or fiduciary’s)agreement to all of the following: 1. Withhold and pay over 10% or loweramount determined by the IRS (or theamount the IRS determines to beappropriate under section 1445(e)) of thedown payment. The amount of the downpayment includes any liabilities of thetransferor (entity in the case of section1445(e)) assumed by the transferee, orliabilities to which the U.S. real propertyinterest was subject immediately before andafter the transfer.

Who can apply for a withholdingcertificate. Either the transferee or thetransferor (or other authorized person) canfile this application. Withholding certificate. The IRS can issuea withholding certificate to reduce oreliminate withholding under section 1445. Acertificate issued before the transfer notifiesthe transferee that reduced withholding orno withholding is required. A certificateissued after the transfer may authorize anearly or a normal refund. If, on the date oftransfer, an application for a withholdingcertificate is or has been submitted to theIRS, the applicable withholding is notrequired to be paid over to the IRS until the20th day after the day that the IRS mails thewithholding certificate or notice of denial. Atransferor that applies for a withholdingcertificate must notify the transferee inwriting that the certificate has been appliedfor on the day of or prior to the transfer.

See Regulations sections 1.1445-3 and1.1445-6 and Rev. Proc. 2000-35 forinformation and procedures for applying fora withholding certificate.

1. A claim that the transferor is entitled tononrecognition treatment or is exempt fromtax,

● Based on an agreement for the paymentof tax with conforming security, ● For blanket withholding certificates underRev. Proc. 2000-35, or ● Other than the three types describedabove.

Line 6a. Enter the year as a four-digitnumber (for example, “2006”).

Identification number. The U.S.taxpayer identification number (TIN) of allparties to the transaction must be on theapplication for a withholding certificate. ForU.S. individuals, the TIN is a social securitynumber (SSN). For all other entities, it is anemployer identification number (EIN). If youdo not have an EIN, you can apply for oneonline at www.irs.gov/smallbiz or bytelephone at 1-800-829-4933. Also, you canfile Form SS-4, Application for EmployerIdentification Number, by fax or mail.

Line 1. Enter the name, street address, andidentification number of the transferor. Ifthere are multiple transferors, attachadditional sheets giving the requiredinformation about each one. For atransaction under section 1445(e), enter therequired information for each foreign personfor whom you are requesting reducedwithholding. Line 2. Enter the name, street address, andidentification number of the transferee. Ifthere are multiple transferees, attachadditional sheets giving the requiredinformation about each one. Line 4a. The withholding agent will normallybe the buyer or other transferee asdescribed in section 1445(d)(4). Fordistributions under section 1445(e), thewithholding agent also includes a trustee,executor, or other authorized person. Line 4b. If you are not applying for thiswithholding certificate in your personalcapacity, enter your SSN or ITIN (seeIdentification number on this page for moreinformation). Line 4c. If you are acting on behalf of anestate or trust, or are signing as anauthorized person for an entity other thanan individual (for example, a corporation,qualified investment entity, or partnership),enter the name of the estate, trust, or entity. Line 4d. Enter the EIN of the estate, trust,or entity. Line 5. Enter the address you want the IRSto use for purposes of returning thewithholding certificate.

Line 6c. “Associated personal property” means property (for example, furniture) soldwith a building. See Regulations section1.897-1.

2. A claim solely on a calculation thatshows the transferor’s maximum tax liabilityis less than the tax otherwise required to bewithheld, or 3. A claim that the special installmentsales rules described in section 7 of Rev.Proc. 2000-35 allowed reducedwithholding.

If you are a nonresident alien individualwho is required to have a TIN, but is noteligible to obtain an SSN, you must applyfor an IRS individual taxpayer identificationnumber (ITIN). If you do not have a TIN andare eligible for an ITIN, you can apply for anITIN by attaching the completed Form8288-B to a completed Form W-7 andforwarding the package to the IRS at theaddress given in the Form W-7 instructions.Get Form W-7, Application for IRSIndividual Taxpayer Identification Number,for more information.

Page 3 Form 8288-B (Rev. 11-2006)

Line 7b. If you checked 7b, attach acalculation of the maximum tax that can beimposed on the disposition. You must alsoinclude a statement signed by the transferorunder penalties of perjury that thecalculation and all supporting evidence istrue and correct to the best knowledge ofthe transferor.

Evidence that there is no unsatisfiedwithholding liability includes any of thefollowing:

Line 7a. If you checked 7a, attach:

Line 7c. If you checked 7c, see Installmentsales on page 2.

Line 8. You must provide a calculation ofthe transferor’s unsatisfied withholdingliability or evidence that it does not exist.This liability is the amount of any tax thetransferor was required to, but did not,withhold and pay over under section 1445when the U.S. real property interest nowbeing transferred was acquired, or upon aprior acquisition. The transferor’sunsatisfied withholding liability is included inthe calculation of maximum tax liability sothat it can be satisfied by the withholding on the current transfer.

Line 9a. If the transaction is subject towithholding under section 1445(e), checkthe box to indicate which provision ofsection 1445(e) applies.

A nonresident alien or foreign corporationmust also attach a statement of the adjustedbasis of the property immediately before thedistribution or transfer.

Signature. The application must be signed byan individual, a responsible corporate officer, ageneral partner of a partnership, or a trustee,executor, or other fiduciary of a trust or estate.The application may also be signed by anauthorized agent with a power of attorney.

If the purchase price includes personalproperty not subject to tax under section897, for the calculation of maximum tax, thetransferor must also include a statementlisting each such item of personal propertytransferred and the fair market value

Line 6d. Check “Other” if the property wasused for both personal and rental use andattach an explanation. Line 6f. Enter the address and descriptionof the property (for example, “10-story,100-unit luxury apartment building”). For areal estate holding corporation interesttransferred, enter the class or type andamount of the interest (for example, “10,000shares Class A Preferred Stock XYZCorporation”). You may attach additionalsheets. Be sure to include your name andTIN on each sheet you attach.

Privacy Act and Paperwork Reduction ActNotice. We ask for the information on thisform to carry out the Internal Revenue lawsof the United States. Section 1445 generallyimposes a withholding obligation on thebuyer or other transferee (withholding agent)when a U.S. real property interest isacquired from a foreign person. Section1445 also imposes a withholding obligationon certain foreign and domesticcorporations, qualified investment entities,and the fiduciary of certain trusts andestates. This form is used to apply for awithholding certificate to reduce or eliminatewithholding on dispositions of U.S. realproperty interests by foreign persons ifcertain conditions apply.

The time needed to complete and file thisform will vary depending on individualcircumstances. The estimated average time is: Recordkeeping 2 hr., 4 min.

Learning about thelaw or the form 2 hr., 7 min.

Preparing the form 1 hr., 7 min. Copying, assembling,

and sending the formto the IRS 20 min.

You are not required to provide theinformation requested on a form that issubject to the Paperwork Reduction Actunless the form displays a valid OMBcontrol number. Books or records relatingto a form or its instructions must beretained as long as their contents maybecome material in the administration ofany Internal Revenue law. Generally, taxreturns and return information areconfidential, as required by section 6103.

If you have comments concerning theaccuracy of these time estimates orsuggestions for making this form simpler,we would be happy to hear from you. Youcan write to the Internal Revenue Service,Tax Products Coordinating Committee,SE:W:CAR:MP:T:T:SP, 1111 ConstitutionAve. NW, IR-6406, Washington, DC 20224.Do not send this form to this office. Instead,see Where to send applications for awithholding certificate on page 2.

1. A brief description of the transfer, 2. A summary of the law, 3. Facts supporting the claim of

nonrecognition or exemption, 4. Evidence that the transferor has nounsatisfied withholding liability, and 5. The most recent assessed value forstate or local property tax purposes of theinterest to be transferred, or other estimateof its fair market value. You need not submitsupporting evidence of the value of theproperty.

1. Evidence that the transferor acquiredthe subject or prior real property interestbefore 1985; 2. A copy of Form 8288 filed and proof ofpayment; 3. A copy of a withholding certificateissued by the IRS plus a copy of Form 8288and proof of payment of any amountrequired by that certificate; 4. A copy of the nonforeign certificatefurnished by the person from whom theU.S. real property interest was acquired (thecertificate must be executed at the time ofacquisition); 5. Evidence that the transferor purchasedthe subject or prior real property interest for$300,000 or less and a statement, signedby the transferor under penalties of perjury,that the transferor purchased the propertyfor use as a residence within the meaning ofRegulations section 1.1445-2(d)(1); 6. Evidence that the person from whom thetransferor acquired the subject or prior U.S. realproperty interest fully paid any tax imposed onthat transaction under section 897; 7. A copy of a notice of nonrecognitiontreatment provided to the transferor underRegulations section 1.1445-2(d)(2) by theperson from whom the transferor acquiredthe subject or prior U.S. real propertyinterest; or 8. A statement, signed by the transferorunder penalties of perjury, explaining whythe transferor was not required to withholdunder section 1445(a) with regard to thetransferor’s acquisition of the subject orprior real property interest.

The calculation of the maximum tax thatcan be imposed must include: 1. Evidence of the amount to be realizedby the transferor, such as a copy of thesigned contract of transfer; 2. Evidence of the adjusted basis of theproperty, such as closing statements, invoicesfor improvements, and depreciationschedules, or if no depreciation schedules aresubmitted, a statement of the nature of the useof the property and why depreciation was notallowed; 3. Amounts to be recaptured fordepreciation, investment credit, or otheritems subject to recapture; 4. The maximum capital gain and/or ordinaryincome tax rates applicable to the transfer; 5. The tentative tax owed; and

6. Evidence showing the amount of anyincrease or reduction of tax to which thetransferor is subject, including anyreduction to which the transferor is entitledunder a U.S. income tax treaty. If you have a net operating loss, see Rev.Proc. 2000-35, section 4.06, for specialrules about the maximum tax calculation.

Line 9b. Indicate whether the applicant isthe taxpayer or the person required towithhold, and in what capacity that personis required to withhold.

You are required to provide thisinformation. Section 6109 requires you toprovide your taxpayer identification number.We need this information to ensure that youare complying with the Internal Revenuelaws and to allow us to figure and collectthe right amount of tax. Failure to providethis information in a timely manner, orproviding false information, may subject youto penalties. Routine uses of thisinformation include giving it to theDepartment of Justice for civil and criminallitigation, and to cities, states, and theDistrict of Columbia for use in theadministration of their tax laws. We mayalso disclose this information to othercountries under a tax treaty, to federal andstate agencies to enforce federal nontaxcriminal laws, or to federal law enforcementand intelligence agencies to combatterrorism.

attributable to each item. The fair marketvalue claimed should be supported by anindependent appraisal or other similardocumentation.

Form 2848, Power of Attorney and Declarationof Representative, can be used for thispurpose.

Line 6g. A U.S. income tax return includesForms 1040NR, and 1120-F.

Form

W-7 (Rev. January 2010)

Department of the TreasuryInternal Revenue Service

Application for IRS IndividualTaxpayer Identification Number

© For use by individuals who are not U.S. citizens or permanent residents.

OMB No. 1545-0074

● Do not submit this form if you have, or are eligible to get, a U.S. social security number (SSN).

Before you begin: ● Getting an ITIN does not change your immigration status or your right to work in the United Statesand does not make you eligible for the earned income credit.

Name

1a

First name

Middle name

Last name

Name at birth ifdifferent ©

1b

First name

Middle name

Last name

Foreign (non-U.S.) address

Street address, apartment number, or rural route number. Do not use a P.O. box number.

City or town, state or province, and country. Include ZIP code or postal code where appropriate.

Applicant’smailing address

Street address, apartment number, or rural route number. If you have a P.O. box, see page 4.

City or town, state or province, and country. Include ZIP code or postal code where appropriate.

Birthinformation

Date of birth (month / day / year)

/ /

Country of birth

Male Female

Otherinformation

6a

Country(ies) of citizenship

6b

Foreign tax I.D. number (if any)

FOR IRS USE ONLY

6d

Identification document(s) submitted (see instructions)

Type of U.S. visa (if any), number, and expiration date

6e

Have you previously received a U.S. temporary taxpayer identification number (TIN) or employer identification number (EIN)?

Yes. Complete line 6f. If more than one, list on a sheet and attach to this form (see instructions).

No/Do not know. Skip line 6f.

Under penalties of perjury, I (applicant/delegate/acceptance agent) declare that I have examined this application, includingaccompanying documentation and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Iauthorize the IRS to disclose to my acceptance agent returns or return information necessary to resolve matters regarding theassignment of my IRS individual taxpayer identification number (ITIN), including any previously assigned taxpayer identifying number.

SignHere Signature of applicant (if delegate, see instructions)

Date (month / day / year)

/ /

Phone number

Name of delegate, if applicable (type or print)

Delegate’s relationshipto applicant

Parent

Court-appointed guardian

AcceptanceAgent’sUse ONLY

Signature

For Paperwork Reduction Act Notice, see page 5.

Cat. No. 10229L

Form W-7 (Rev. 1-2010)

©

©

Passport

(if different fromabove)(see instructions)

© See instructions.

6f

Keep a copy foryour records.

Reason you are submitting Form W-7. Read the instructions for the box you check. Caution: If you check box b,c, d, e, f, or g, you must file a tax return with Form W-7 unless you meet one of the exceptions (see instructions).

Dependent of U.S. citizen/resident alien Spouse of U.S. citizen/resident alien

U.S. resident alien (based on days present in the United States) filing a U.S. tax return

Nonresident alien filing a U.S. tax return

% Enter name and SSN/ITIN of U.S. citizen/resident alien (see instructions) ©

b c d e

(see instructions)

City and state or province (optional)

6c

Driver’s license/State I.D. USCIS documentation

Other

EIN

Nonresident alien required to get ITIN to claim tax treaty benefit

a

Phone ( )

Power of Attorney

An IRS individual taxpayer identification number (ITIN) is for federal tax purposes only.

Nonresident alien student, professor, or researcher filing a U.S. tax return or claiming an exception

f

6g

Name of college/university or company (see instructions) City and state Length of stay

Dependent/spouse of a nonresident alien holding a U.S. visa

g Other (see instructions) ©

Additional information for a and f: Enter treaty country © and treaty article number ©

h

Entry date in United States / /

( )

No.: Exp. date: / /

2

3

4

5

Issued by:

Enter: TIN or EIN © andName under which it was issued ©

Fax ( )

Date (month / day / year)

/ / Name and title (type or print)

© Name of company

© Office Code