Many foreign sellers mistakenly believe they must first obtain an ITIN before exploring FIRPTA withholding certificate options. Timing and coordination often matter more than people realize.

What Happens If FIRPTA Is Discovered After Closing? Most FIRPTA issues are resolved before closing. Unfortunately, not all of them are. When FIRPTA compliance problems are discovered after the transaction has closed, resolving them often becomes more complicated, more time-consuming, and more expensive. Why This Matters Under FIRPTA, the buyer is generally responsible for ensuring the required withholding is properly handled and remitted to the IRS when purchasing U.S. real e

In many FIRPTA transactions, withholding may be lawfully reduced before closing through a properly prepared and timely submitted Form 8288-B withholding certificate application. Can FIRPTA Withholding Be Reduced Before Closing? Yes—in many transactions, it may be possible. Many foreign sellers are surprised to learn that FIRPTA withholding may be reduced before closing through a properly prepared and timely submitted Form 8288-B Withholding Certificate Application. Why This M

The Foreign Investment in U.S. Real Property Tax Act of 1980 Prior to 1980 no FIRPTA withholding or tax on Foreigners selling US...

The IRS holds the Buyer/ Payor 100% liable for the full 15% of gross sale or distribution FIRPTA withholding, remitting these Seller /...

Beware of granting exceptions! The IRS holds the Buyer/Payor and Agents liable! Buyers of property where the sale price is $300,000 or...

The 3 simple logic questions behind calculating FIRPTA withholding. Click here for the 3 simple logic questions behind calculating FIRPTA...

A. Who Must File If you are any of the following, you must file a return: A nonresident alien individual engaged or considered to be...

US Real Property Interests and US Real Property Holding Company USRPI = U.S. Real Property Interest includes more than a direct interest...

It is important to test every FIRPTA disposition for ECI income and deductions and know how to report it to the IRS or suffer an audit...

Fixed, Determinable, Annual, or Periodical Income (FDAP) It is important to test every FIRPTA disposition for FDAP income which is a form...

We handle Seller cases subject to FIRPTA and Buyer cases verifying exception requests. WE SERVE: Buyers, Foreign Sellers, Foreign...

Our Clients are the Foreign Sellers of U.S. Real Estate or recipients of U.S. taxable real property income and /or capital gains....

If you are an Non Resident Alien (NRA) (not a U.S. citizen), you are considered a nonresident alien unless you meet one of two tests....

Examples:​ Fee ownership, Co-ownership, Shareholder distribution, Leasehold interest, Time share, Life estate, Remainder or reversionary...

We make the complexities of ITINs simple and easy for our clients and their agents. ​ We assist our clients in obtaining IRS Employer...

Real Estate Transactions Under contract but have not yet closed. Two withholding choices: File for Reduced Withholding Certificate at...

Already sold Real Estate Transactions, closed within the last 3 years. FIRPTA withholding has been remitted to the IRS but no tax return...

RESIDENTIAL Primary Residences Second (Vacation) Homes Single Family Condominium Condotel (Condos with a front desk) Cooperatives...

United States:​ Lower 48, Alaska, Hawaii Caribbean & North Atlantic Region, Puerto Rico (Capital: San Juan) United States Virgin Islands...