Expert assistance with FIRPTA withholdings on real estate transactions
Get Help with FIRPTA Compliance
Foreign Investment in Real Property Tax Act (FIRPTA) withholdings are a complicated part of real estate transactions between foreign sellers of real property in the US and their buyers. The process involves a number of regulations, different rules for different entities making the sale, and special documents. It’s not advisable for either party to enter into a FIRPTA transaction without professional assistance.
What Are FIRPTA Withholdings?
FIRPTA withholding is an estimated income tax withholding on the sale of real property in the US—typically 15% of the sale price. The Foreign Investment in Real Property Tax Act was established to ensure the IRS has a way to collect taxes owed by non-citizens and non-residents on their gains or earnings when they sell US property.
The buyer is initially responsible for paying the FIRPTA withholding, which ultimately protects them against liability for the taxes owed by the seller. The buyer reports the sale to the IRS and pays the withholding; if they fail to do so, they become liable for the taxes due on the transfer of the property. The seller obtains the difference between the withholding amount and their tax liability when they file their US tax return the following year.
HBI Specializes in FIRPTA Orlando and FIRPTA Kissimmee Transactions
We’ve been helping clients with all their tax, accounting, mortgage, and financial advisory needs since 2000. We specialize in US real estate transactions involving foreign investors. Our expertise ensures full compliance with US tax laws and requirements for filing and paying while minimizing our clients’ tax burden.
Whether you’re an individual, corporation, or other entity, and whether you’re the buyer or seller in a FIRPTA real estate transaction, let us handle the details and help you achieve full compliance without any headaches. We also assist with applications for FIRPTA withholding exemptions, filing tax returns with report of the property sale, and more.
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