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Who Is Considered a Foreign Seller under FIRPTA

 

Who Is Considered a Foreign Seller under FIRPTA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Check out this explainer video

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A Foreign Person is a non-resident alien individual, foreign corporation that has not made an election under section 897(i) of the Internal Revenue Code to be treated as a domestic corporation, a single-member LLC that has not elected to be taxed as a corporation, foreign partnership, foreign trust, or foreign estate.

 

Who is not included?

  • A resident alien individual.
  • A foreign individual that passes the Substantial Presence Test
  • Foreign corporation that has made an election under IRC Section 897(i) to be taxed as a domestic corporation
  • A Single Member LLC electing to be taxed as a corporation
  • A Multi-member LLC taxed as a partnership
  • A Multi-member LLC taxed as a corporation

 

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

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

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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