What Realtors Must Know About FIRPTA
Under FIRPTA, anyone buying or receiving a U.S. property from a foreigner – be it a foreign individual or a foreign business entity – is required to retain a certain percentage of the funds from the sale to be collected as a tax withholding. If the Seller is not a “U.S. Person”, then the Buyer may have to withhold up to 15% of the gross sale price at closing. Although the taxable gain of a transaction is earned by and thus taxable to the foreign seller, the buyer is held liable for the tax if it is not paid by the foreign seller.
Topics we will cover include:
– Rates of Withholding
– The FIRPTA Withholding Certificate
– Exceptions to FIRPTA
– Who is a Non-U.S. Person Subject to FIRPTA
– Buyer’s Duties & Liabilities
– Realtor’s Duties & Liabilities
– Policy and Political Factors behind FIRPTA
Email Romy@juradolawfirm.com or call (305) 921-0976 if you have any questions.