(Foreign Investment in Real Property Tax Act)
You may be asking “What is FIRPTA?” It’s not a tax, but a required withholding.
The U.S. imposes a 10-15% withholding tax on sales of U.S. real property by foreign sellers. Both the buyer and seller may have US tax obligations for the sale of real estate.
There are exemptions from FIRPTA withholding. We can help you through the entire withholding process and potentially arrange for a lesser amount of withholding. Note that the withholding is almost always vastly higher than the actual tax, so tax returns will need to be filed after year end in order to have the excess withholding refunded. We prepare these returns.
We are often asked the difference between a repair and an improvements. Certain improvements may be used for tax advantage. For general information between a repair and an improvement, click here.
Duane Eckelberg Is an IRS Acceptance Agent
Duane is an IRS Acceptance Agent authorized to assist individuals and other foreign persons who do not qualify for a Social Security Number but who still need a Taxpayer Identification Number (TIN) to file tax returns and other filings.
FIRPTA requires having a US Individual Tax Identification Number (ITIN). As an Acceptance Agent, Duane can facilitate issuance of the ITIN – prepare the application, assemble all of the required documentation, and forward the completed package to the IRS for you.
FIRPTA can seem daunting. We are here to help!