Are you buying real property from a foreign person? Or are you a foreign person selling real property in the United States? If so, the Foreign Investment in Real Property Tax Act (FIRPTA) may apply to you.
If you are subject to FIRPTA, the buyer must withhold a percentage of the sale and turn it over to the Internal Revenue Service. This is 10%, 15%, or more, depending on the sale price and certain conditions and circumstances.
Of course, whenever taxes are involved, it is complicated. There are many factors to consider and questions to answer. These include the following:
- Is the sellers a foreign person under the definition of the Act?
- Are there exceptions in your case?
- How much do you withhold from the sale?
- When must the withholding be paid to the IRS?
Be aware that failing to strictly comply with the time limits to submit the tax results in significant penalties. This is the buyer’s responsibility, not the closing agent. You must know your rights.
If you need help with a FIRPTA issue, please call me for free, confidential consultation at 305-682-1118.
Tax Services Include:
- Installment Agreements
- Wage Garnishments
- Property Seizures
- Offer in Compromise
- IRS Penalties
- Un-Filed Returns
- Innocent Spouse Cases
- Payroll Tax Problems
- Liens & Levies
- Audit Representation
- Tax Debt Negotiation
- Employer Shared Responsibility Provisions Problem (ERSP)
- FIRPTA Problem
- United States Tax Court
We offer weekend and evening appointments if needed.
In addition we offer easy and convenient payment options, including credit cards and payment plans.