In some real estate transactions, FIRPTA issues are not identified until after closing has already occurred. This can create significant complications for buyers, sellers, attorneys, and settlement agents. Under FIRPTA, buyers are generally responsible for ensuring that required withholding is properly handled and remitted to the IRS when purchasing U.S. real estate from a foreign seller. If FIRPTA withholding was overlooked or underpaid, potential issues may include: unpaid

Many foreign sellers are surprised to learn that FIRPTA withholding may potentially be reduced before closing through a properly prepared withholding certificate application. Under FIRPTA, buyers are generally required to withhold a percentage of the gross sales price when purchasing U.S. real estate from a foreign seller. However, the withholding amount is not always the seller’s actual U.S. tax liability. In some situations, the seller’s final tax obligation may ultimately

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...

FORECLOSURES - Disposition under FIRPTA 1. Subject to tax on any gain resulting 2. Transferee (buyer, bank, lender, etc) is responsible...