Sellers

When it comes to FIRPTA, the foreign seller has an option to remit the funds or apply for a reduced withholding amount. This will depend on certain variables such as how much you’re selling the property, whether you have a gain or a loss. To find out which option is best for you, you can use our FIRPTA Calculator and schedule a call with our FIRPTA Agents.

BUYERS

When it comes to FIRPTA, the IRS makes the buyer the withholding agent. The buyer will be responsible to withhold up-to 15% of the selling price and send it to the IRS within a certain time frame. If the buyer doesn’t withhold, then they may be held liable for the tax plus penalties and interest. If the buyer is planning to reside in the property they can sign an affidavit, under penalty of perjury, that their intent is for them or a family member to occupy the property at least  50% of the number of days the property is occupied by any one person. This must be their intent for each of the first two 12-month periods after closing. Also, the buyer must purchase the property in their personal name.

According to FIRPTA regulations, the amount of tax required to be withheld cannot exceed the maximum tax liability of the Seller. Often times, the actual tax liability is far less than the required 15%. Upon receipt of the Withholding Certificate, the IRS can agree to an amount less than the standard withholding.

Fill Our Withholding Questionnaire To Start The Process

The IRS requires the Buyer and the Seller to have a U.S. tax ID. For an individual, this number can be an Individual Tax Identification Number (ITIN) or a Social Security Number (SSN). If you are not eligible for a SSN, FIRPTA Solutions Inc. has a team of certified agents who can confirm your identity and complete all the necessary documentation for you to obtain your U.S. ITIN for tax purposes.

Sign Up For An ITIN

If a Withholding Certificate is not for you, then the full required withholding amount must be remitted from the date of transfer. It is critical for these forms to be prepared with precision and in a timely manner. FIRPTA Solutions Inc. knows just how to handle these forms. We will track them through the system until you receive a validated receipt.

Find Out If A Withholding Certificate Is Right For You?

Get in touch with us!

+1 (239)540-1022

info@firptasolutions.com

709 Cape Coral Pkwy W, Cape Coral, FL 33914, USA

 

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