Colorado state withholding stacks at 2%. We handle the federal piece end-to-end for sellers, buyers, and Colorado closing agents, with same-day intake response on every deal.
Colorado stacks state withholding on top of federal FIRPTA. The default rate is 2% of the gross sales price, filed on Form DR 1083 (info return) + DR 1079 (remittance) at or shortly after closing.
On a $1,000,000 Colorado foreign-seller closing, the default closing-table withholding is $150,000 federal + $20,000 state = $170,000. Both halves can be reduced or eliminated via the right certificates filed before the deed records.
FIRPTA is federal — every Form 8288, 8288-A, and 8288-B routes to the IRS Ogden Service Center regardless of property location. We coordinate with Colorado title companies, closing attorneys, and foreign sellers across:
Yes. Colorado requires 2% withholding on nonresident-seller real-property sales, filed on Form DR 1083 (info return) + DR 1079 (remittance), on top of the federal FIRPTA 15%. There is no formal pre-closing reduction certificate; the seller recovers any over-withholding via the state nonresident return.
Yes. The closing-table Form DR 1083 (info return) + DR 1079 (remittance) withholding is a deposit against the seller's final Colorado liability on the gain — the seller files a nonresident return in Colorado to reconcile and recover any over-withholding (or owe additional tax if the closing-table amount was too low).
Yes. FIRPTA is a federal tax regime; the IRS Ogden Service Center processes every Form 8288, 8288-A, and 8288-B regardless of the property's state. We coordinate with Colorado title companies and closing attorneys nationwide via email, secure file upload, and our intake at firptaincometaxwithholding.com/#intake. Same-day response on every intake.
Same-day response. No fee to your title company. No surprises at closing.