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Is Every Property Under $300,000 Exempt From FIRPTA, NO!

 

Is Every Property Under $300,000 Exempt From FIRPTA, NO!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Check out this explainer video

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

You must ask the question in order of importance.

Sales Price is the last question!

 

First

Will the buyer or a family member must have definite plans to"reside" for at least 50% of the number of days the property is used by "any" person during each of the TWO TWELVE MONTH periods following the date of the transfer, if no, the transaction is subject to FIRPTA withholdings.

When counting the number of days that the property is used, do not count the days the property will be vacant. For this exception, the buyer must be an individual.

 

Second

Will the buyer sign the certificate of intent to occupy, if no, the transaction is subject to FIRPTA withholdings.

 

Third

Is the purchase price $300,000 or less?  If the answer to the first and second question are yes and the purchase price is $300,000 or less, the transaction is exempt from FIRPTA withholdings.

 

NOTE:  If the purchase price is $300,001 it is subject to FIRPTA withholdings.

Also if the property is raw land or being purchased as investment rental, it is always subject to FIRPTA Withholdings, regardless of the purchase price.

 

Check Out These Other Articles and Resources

 

FIRPTA Withholding Certificate Calculator

Done For You FIRPTA Process

FIRPTA FAQs

FIRPTA Withholding Explained

Three Really Bad Times to Discover FIRPTA

If You Are the Realtor of the Buyer Involved in a FIRPTA Transaction, Is You Job Complete Once the Title Company Says They Have Sent the IRS a Check

Is Your Seller Foreign Under FIRPTA- Maybe Not!

Does the Buyer’s Liability End with the Signing of the FIRPTA Certification of Residential Occupancy- NO!

Does the Buyer’s Liability End with the Buyer’s Certification of Residential Use to Reduce the Seller’s Withholding Rate- NO!

Opportunities for FIRPTA Tax Withholding Reduction, Exemption, and Exclusion for an Individual Seller

Definitions of Terms and Procedures Unique to FIRPTA

Who Is Considered a Foreign Seller under FIRPTA

Can a Foreign Seller Use a Section 1031 Exchange to Avoid FIRPTA Withholding- Yes Under Certain Conditions!

Can the Buyer Rely of the Seller’s Certification That They are not a Foreign Person?

Opportunities for FIRPTA Tax Withholding Reduction, Exemption, and Exclusion for an Entity Seller

 

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