Colorado DR 1083

[Daniel James]

Hey guys,

I am a new AZ resident selling a property in Colorado that qualifies for section 121 exclusion of the IRS code. The property was our primary residence from March 2010 to June of 2013. After that date, it was a rental property until now (we close mid April).

I am under the impression that if I qualify for the section 121 exclusion, I would also be excluded from the CO 2% withholding by filling out a Colorado DR 1083 and marking principal residence. Is this correct?

This is what it says about the DR1083 exclusion I think I qualify for:

Withholding shall not be made when:

• that the Colorado real property being conveyed is the principal residence of the transferor which could qualify for the exclusion of gain provisions of section 121 of the Internal Revenue Code;

The reason why I am confused is because our residency of "2 out of the past 5 years" for the 121 exclusion is front loaded. "Primary residency" isn't exactly spelled out in the DR1083.

Does anyone have any experience with this?

Thanks in advance!