👋 FIRPTA Buyer's Affidavit
(Buyer’s Residential Use Affidavit – BRUSA)
FIRPTA withholding (typically 15%) may be reduced or eliminated when the buyer intends to use the property as a residence and meets specific IRS requirements.
🧠 When Withholding Can Be Reduced or Eliminated
Under FIRPTA, reduced withholding may apply when the buyer (or a member of the buyer’s family) plans to reside in the property for at least 50% of the days it is used during each of the first two years after closing.
💰 Withholding Thresholds
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$300,000 or less
👉 No FIRPTA withholding required (if residential use criteria are met) -
$300,001 to $1,000,000
👉 Withholding reduced to 10% (if residential use criteria are met) -
Over $1,000,000
👉 Standard 15% withholding applies
⚠️ Important Requirements
To qualify, the buyer must:
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Intend to use the property as a residence
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Meet IRS occupancy requirements
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Execute a properly prepared Buyer’s Residential Use Affidavit (BRUSA)
👉 This is a formal affidavit — not just a checkbox — and must be completed correctly.
Important: The Buyer’s Affidavit (BRUSA) is not the same as a Certificate of Non-Foreign Status. These documents serve entirely different purposes and must be used correctly. 👉 “Certificate of Non-Foreign Status”
🧾 How We Help
FIRPTA Refunds assists with:
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Preparation of the Buyer’s Affidavit (BRUSA)
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Ensuring proper statutory language and compliance
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Providing detailed instructions to buyers and closing agents
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Coordinating documentation within the closing process
We help ensure the affidavit is used correctly and defensibly.
⚠️ Why Proper Handling Matters
Incorrect use of a Buyer’s Affidavit can result in:
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Failure to withhold required tax
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IRS penalties and interest
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Liability for the buyer and other parties
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Compliance issues after closing
👉 Proper qualification and documentation are essential.
👉 See If You Qualify
If you believe your transaction may qualify for reduced or eliminated FIRPTA withholding, we can help you determine eligibility and handle the process correctly.