FIRPTA And What It Means For You As An International Seller

If you are a seller who is a non-resident of the United State then FIRPTA, which stands for Foreign Investment in Real Property Tax Act, applies to the sale of your home.

Here are the things you need to know as a seller:

  1. You must have a Tax Identification Number with the IRS. If you do not have one yet, go HERE to learn more and apply.
  2. FIRPTA is applied to the Gross Sales Price of the property.
  3. 15% of the sales price is required to be withheld for taxes.
  4. If the sale price exceeds $300,000, there are no FIRPTA exemptions allowed. 
  5. Just because monies are held by the IRS, doesn't mean it's gone. You, as the seller, can apply for a refund by being up-to-date on your tax returns and filing a return for the year in which your property sells.
  6. If you have any questions or concerns, it's best to speak with an accountant who specializes in FIRPTA.

Recommended Accountant:

Harding Bell International | | 1-863-968-1010