The FIRPTA Tax Rate applicable may be 15% (versus the old 10% rate) on properties selling for US $1 Million or more.

However, the 10% rate may apply for properties selling for under $1 Million – subject to meeting the IRS criteria to be still eligible for the 10% rate. Otherwise, the new 15% rate may apply to certain transactions – even to those under $1 million!

Should you have questions or need help with FIRPTA, or need Business or Individual tax advice, out firm is available via phone at (305) 672-4272 – as well as via e-mail at DAVID@CPA-FL.COM.  Our Firm Website is WWW.CPA-FL.COM

See our Firm Video on FIRPTA: 

According to the FIRPTA Rules – if a person is a US Non-Resident Foreigner and disposes of an interest in U.S. real property, that transaction (and the parties to the transaction) are subject to FIRPTA tax withholding.

The good news is that there are some exceptions provided for the FIRPTA withholding tax applicable – however it is important to note that these are not all automatically applicable. 

Often, an Early Withholding Exemption Application must be filed with the IRS in advance of a real estate closing.

Also important to note is that if the IRS deems you are a responsible party for the FIRTPA withholding tax and you neglect to do so, you may be held liable for the tax!

If you are a realtor, purchaser, or real estate attorney who represents a foreign non-resident person, foreign entity or even a U.S. entity which is owned by a foreign person it is critical that you insist that the purchaser or seller seek the advice and formally engage a Certified Public Accountant or Tax Attorney to advise how the FIRPTA laws may apply to their particular situation. 

Should you have questions or need help with FIRPTA as well as need Business or Individual Tax Advice:

Our firm may be contacted at: 

PHONE:  (305) 672-4272  [4CPA]

E-MAIL:  DAVID@CPA-FL.COM   

WEBSITE:  WWW.CPA-FL.COM