Archive | FIRPTA

Foreign Investors in Real Estate Crowdfunding

What is FIRPTA?

FIRPTA stands for the Foreign Investment in Real Property Tax Act 1980.  FIRPTA authorized the United States to tax foreign persons on dispositions of U.S. real property interests.  It requires a buyer of real estate to withhold 10% of the gross sales price (subject to certain exceptions and exclusions) and remit the funds to the […]

Crowdfunding Real Estate Tax

Is there any FIRPTA withholding tax when I dispose of the property?

With the increase in foreign investment in the US, understanding withholding requirements has become very important. Most real estate agents don’t understand it (this makes sense because they are not tax professionals) and sometimes attorneys even struggle with it.  The reality is that the foreign investor should have a general understanding of how FIRPTA works […]

Understanding Partnership Withholding on Foreign Partners

Partnerships have many filing and reporting requirements.  In addition to being required to file annual partnership tax returns (Form 1065), a partnership with foreign partners could be responsible for other tax issues such as: Foreign Investment in Real Property Tax Act of 1980 (“FIRPTA”); NRA Withholding; and Partnership Withholding. I have discussed FIRPTA and NRA […]

Best Way To Get A FIRPTA Certificate

The sale of U.S. real estate by a foreign person is subject to the Foreign Investment in Real Property Tax Act of 1980 (“FIRPTA”) tax withholding. FIRPTA requires a buyer of real estate to withhold 10% of the gross sales price (subject to certain exceptions) and remit the amount to the IRS. However, the amount […]