FIRPTA Withholding is not a tax but a withholding. A withholding is an amount held back used to pay potential taxes. The IRS implements a withholding on foreign sellers to make sure that they pay their fair share of taxes. In other words, the IRS will hold the potential tax owed “hostage” until the seller files a tax return to show what they actually owe.
Who’s Responsible For The FIRPTA Withholding?
- FIRPTA Withholding rules require that a buyer withholds 15% of the gross purchase price of the property at the time of closing when they buy US real property from a foreign person.
How Much Will Be My FIRPTA Withholding?
- Your FIRPTA Withholding percentage can be based on certain factors such as the selling price of the property. Whether the buyer has definite plans to reside in the property at least 50% of the number of days the property is in use by any one person (not counting the days the property is vacant) over the next two 12-month consecutive periods after closing. You can use our FIRPTA Withholding Calculator below to find out how much your withholding will be.
How Can FIRPTA Solutions Help Me?
- FIRPTA Solutions is an accounting firm with over 20 years of experience. We specialize only in FIRPTA Withholding so we know what we are doing. Our FIRPTA experts will go over your case personally assisting you through the minefield of FIRPTA. Some of our services include: