FIRPTA Guidance & FAQs

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Understand FIRPTA withholding, exemptions, ITIN requirements, rules, rates, tax filings, refund procedures and more. Clear Answers for Foreign Sellers, Entities & Complex Sales​. Questions or need assistance? Contact us for a free initial consultation with start my 90 sec. inquiry  or email to RKahn@FPG-USA.com.

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Section A — FIRPTA Basics & Withholding Rules

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1. What is FIRPTA  🔗 View Details

Understand the Foreign Investment in Real Property Tax Act and when it applies to U.S. real estate.

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2. Calculate FIRPTA  🔗 View Details

Estimate potential FIRPTA withholding amounts based on sale price and transaction details.

 

3. The 3 Phases of a FIRPTA Transaction   🔗 View Details

Follow the step-by-step timeline from pre-closing planning to post-closing tax refund.

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4. FIRPTA Withholding Rules Overview  🔗 View Details

Review standard 15% and 10% withholding rates and statutory exceptions.

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5. FIRPTA Exemptions  🔗 View Details

Explore common exemptions, including personal residence rules and non-recognition transfers.

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6. Liabilities for Buyers, Sellers & Agents 🔗 View Details

Understand who the IRS holds financially responsible if withholding is missed.

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7. Geographic Locations of USA Properties  🔗 View Details 

Avoid penalties, property sales subject to FIRPTA cover more than just across all U.S. 50 states.

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Section B — Foreign Sellers, Entities & Tax Rules

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8. What is a Foreign Seller?  🔗 View Details

IRS definitions determining who is subject to FIRPTA.

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9. What is a Non Resident Alien (NRA)   🔗 View Details

Understand how the Green Card and Substantial Presence tests determine U.S. tax residency.

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10. Types of Ownership Subject to FIRPTA  🔗 View Details

Rules for individuals, trusts, LLCs, partnerships, and foreign corporations.

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11. Foreign Corporations   🔗 View Details

FIRPTA withholding and tax requirements for foreign corporations.

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12. Requirements to File Tax Returns  🔗 View Details

Know your legal obligation to file a U.S. tax return following a real estate disposition.

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Section C —Transactions & Special Circumstances

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13. Pending Real Estate Transactions  🔗 View Details

Answers for sellers and buyers currently under contract.

 

14. Closed Real Estate Transactions  🔗 View Details

Next steps if your property has already sold and funds were withheld.

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15. Sellers Can Close Without ITIN   🔗 View Details

Learn how foreign sellers can complete a U.S. closing on time even without an existing ITIN.

 

16. IRS CAA Certified Authentication Agent   🔗 View Details

See how working with an IRS Certified Acceptance Agent simplifies identity verification.

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17. Installment Sales  🔗 View Details

How FIRPTA withholding and tax reporting work when financing a sale over time.

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18. Foreclosures, Deed-in-Lieu, Short Sales  🔗 View Details

FIRPTA compliance rules for distressed property transfers.

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Section D — Tax Calculations, Income & Refunds

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​​​19. What is USRPI & USRPHC   🔗 View Details

Definitions of U.S. Real Property Interests and U.S. Real Property Holding Corporations.

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20. What is ECI   🔗 View Details

How Effectively Connected Income rules impact foreign real estate investors.

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21. What is FDAP  🔗 View Details 

Understanding Fixed, Determinable, Annual, or Periodical income tax rules.

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22. Calculate Tax Basis  🔗 View Details

How to document purchase price, improvements, and depreciation to lower your tax.

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23. Basis Adjustment for Depreciation Allowed or Allowable   🔗 View Details

How depreciation affects tax basis and taxable gain.

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24. Income From Other Than Real Estate   🔗 View Details

Tax rules for rental income and non-property U.S. income.

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25. Getting Your Refund  🔗 View Details

Options for receiving your IRS refund through U.S. or foreign banks.

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26. Where is My IRS Refund?   🔗 View Details

Expected IRS processing timelines and how to track your refund.

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Section E — Additional Guidance & Resources

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27. FIRPTA Services Other Than Real Estate  🔗 View Details

Guidance on non-real-estate dispositions and specialized withholding scenarios.

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28 Travel VISA FAQ  🔗 View Details 

How U.S. visa status relates to tax residency and FIRPTA requirements.

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29. Types of Cases We've Handled 🔗 View Details

Examples of FIRPTA transactions and complex cases we've resolved.

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30. Types of Real Estate We've Handled 🔗 View Details
Residential, commercial, investment properties, land, and more.

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31. Insights  (Our Blog) 🔗 View Details

Read our latest blog articles, IRS updates, and FIRPTA commentary.

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