Alabama Form NR -AF1: Affidavit of Sellers Residence

If a person wishes to sell a property in the State of Alabama, the following affidavit has to be executed. This aim of this affidavit is making sure that the property being sold is not going to be affected by the withholding laws of Alabama.

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A	LABAMA	D	EPARTMENT OF	R	EVENUE	
INDIVIDUAL	& C	ORPORATE	TAX	D	IVISION	
W	ITHHOLDING	TAX	SECTION
P.O. Box 3\b\f480  •  Montgomery, AL 3613\b\f480 www.revenue.alabama.gov	
Affidavit of Selle r’s Residence	
F\brm NRAF1	
6/13	
SELLER’S NAME (AND SPOUSE’S NAME, IF JOINTLY OWNED)
SELLER’S IDENTIFICATION NUMBER (SSN OR FEIN)	
*                  \3                  \3                  \3	SPOUSE’S IDENTIFICATION NUMBER (IF JOINTLY OWNED)	*	
STREET ADDRESS 
                  \3                  \3                  \3                  \3                  \3                  \3                  \3              CITY                   \3                  \3                  \3                  \3      STATE                  ZIP	
INSTRUCTIONS	
This form is to be executed by the seller and furnished to the buyer to establish Alabama residency so that the proceeds of the sale of property
are not subject to the withholding laws of this state (see Section 401886,  Code of A\fa\bama 1975)\b Alabama residents include both individuals
and business entities domiciled in Alabama\b Business entities will be considered domiciled in Alabama if they are organized under Alabama law
or  they  have  their  principal  place  of  business  in  Alabama\b  Alabama  residents  are  not  subject  to  the  withholding  provisions  of  Alabama  Code
Section 401886, and are not required to complete this form; however, a buyer may wish to have an Alabama resident complete this form as
proof  of  residency  for  the  buyer’s  records\b  In  this  case,  the  form  should  not  be  sent  to  the  Alabama  Department  of  Revenue,  but  should  be
retained by the buyer\b
Sellers are not subject to withholding from the proceeds of a sale if either they are a resident of Alabama or they are deemed to be a resident of
Alabama  by  virtue  of  the  fact  that  they  have  filed  Alabama  tax  returns  in  the  preceding  two  years,  do  business  or  own  property  in  Alabama,
intend  to  file  an  Alabama  tax  return  for  the  current  year,  and  if  they  are  a  corporation  or  limited  partnership,  are  registered  to  do  business  in
Alabama\b
The seller is to execute this affidavit by placing an initial in the blank preceding the statements which apply\b The buyer may rely on the seller’s
affidavit unless the buyer knows or should know, based on the buyer’s knowledge at the time of closing, that statements made on the affidavit
are  false\b The  buyer  has  no  duty  to  investigate  the  statements  made  on  a  seller’s  affidavit\b  For  a  transaction  where  a  nonresident  seller  is  a
“deemed resident,” the buyer should retain a copy of the affidavit and submit the original copy to the Alabama Department of Revenue, Individual
and Corporate Tax Division, Withholding Tax Section, P\bO\b Box 3\f7480, Montgomery, AL 3613\f7480\b
*\bor privacy and confidentiality purposes, the SS\f or \bEI\f of the seller and of the buyer may be omitted or deleted from copies of all
documents exchanged between the parties involved. However, all documents required to be submitted to the Alabama Department of
Revenue must contain the complete SS\f or \bEI\f information on the original copy mailed to the Department.
Seller is exempt from withholding on the sale of property because:
_____ Seller is a resident of Alabama\b (If this statement applies, do not	
submit a copy of this form to the Alabama Department of Revenue\b The
buyer should retain a copy of the affidavit as a record of the transaction\b)
Seller is not a resident of Alabama, but is a “deemed resident” for purposes of withholding because ALL of the following apply:
_____ Seller  is  a  nonresident  who  has  filed  Alabama  tax  returns  or  appropriate  extensions  have  been  received  by  the  Department  for  the preceding two years; AND 
_____ Seller is an established business in Alabama and will continue substantially the same business in Alabama after the sale OR the seller has real property in Alabama at the time of closing of equal or greater value than the withholding tax liability as measured by the 100%property tax assessment of such remaining property; AND
_____ Seller will report the sale on an Alabama income tax return for the current year and file by its due date with extensions; AND
_____ If seller is a corporation or limited partnership, seller is registered to do business in Alabama\b
Under penalties of perjury, I swear that the above information is to the best of my knowledge and belief, true, correct, and complete\b	
SELLER’S SIGNATURE (AND TITLE, IF APPLICABLE)                   \3                  \3            DATE                  \3         SPOUSE’S SIGNATURE (AND TITLE, IF APPLICABLE)                    \3                  \3          DATE
Sworn to and subscribed before me this
______day of _______________________, _______
____________________________________________ Notary Public
My commission expires ________________________