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Is Your Seller Foreign Under FIRPTA- Maybe Not!

 

Is Your Seller Foreign Under FIRPTA- Maybe Not!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Check out this explainer video

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Title Companies and Realtors are too quick to assume a seller is foreign.  There are four easy ways to tell and one difficult way;

 

Four Easy Ways to Determine

 

  • Have a US Passport- Not Foreign
  • Have a US Birth Certificate- Not Foreign
  • Have US Naturalization Documents- Not Foreign
  • Long-term Permanent Resident Visa- Green Card- Not Foreign

 

One Difficult Way to Determine

 

Substantial Presence Test

 

We count the number of days in a three-year look back period, if it equals 183 days and they're not here on an exempt visa (exempt from the substantial presence test)- Not Consider Foreign.

 

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

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

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

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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