Does putting my US property in an LLC make FIRPTA go away?
Before I buy US real estate as a foreign person, I want to set it up right. A lot of formation services imply that holding the property in a US LLC means no FIRPTA when I eventually sell, because the LLC is a US company. Is that actually true, or am I being sold a structure that doesn't do what I think? If it doesn't avoid FIRPTA, what's the honest way to reduce the cash hit on sale?
Related Questions
My US property sits in a single-member LLC — for FIRPTA, is the LLC the seller or am I?
I'm a non-US person and my Florida rental is titled in a single-member LLC that's disregarded for US tax. We're about to sell, and the buyer's title company keeps asking who the 'foreign transferor' i...
IRC 1445 FIRPTA withholding — does the buyer really hold back 15% of the entire sale price when I sell my U.S. property?
I'm a Mexican citizen and I'm selling a condo in Arizona that I hold through my LLC. The title company said they need to withhold 15% of the gross sale price under IRC 1445. The condo is selling for $...
I'm selling my US property on owner financing — why does everyone say start the FIRPTA certificate early?
I'm a foreign seller and I'm taking back a note: small down payment now, the rest over several years. My CPA keeps urging me to file the FIRPTA certificate before closing, but if I'm only collecting a...
How exactly does FIRPTA work when my single-member LLC sells property? Who withholds?
I own a single-member LLC in Delaware that holds a rental house in Arizona. I'm a non-resident alien from Australia. I've accepted an offer and we're heading to closing next month. The buyer's agent i...
How do I apply for a FIRPTA withholding certificate (Form 8288-B) to reduce the 15% withholding?
I'm about to sell a rental property in Colorado for $500K through my foreign-owned LLC. My basis is $430K so the gain is only about $70K. But 15% of $500K is $75,000 withheld — way more than my actual...
Our Form 8288-B was filed before closing but the IRS has not answered yet. Do we still send the withholding money right away?
The seller is from France and the closing agent filed Form 8288-B because the default FIRPTA amount looks far above the actual likely tax. The application was filed before closing, but we still have n...
My LLC owns U.S. real estate — what is FIRPTA under IRC 897 and how does it affect me when I sell?
I'm a French citizen with a Wyoming LLC that holds a rental property in Texas. I'm thinking about selling the property next year. My real estate attorney mentioned FIRPTA and IRC 897, saying the buyer...
I don't have a US tax number yet and I'm selling — does FIRPTA filing just stop?
Foreign seller here, closing soon, and I've never had a US tax ID. The title company says they still have to send the FIRPTA money to the IRS, but without my number I'm worried the paperwork can't be ...
How do I stop FIRPTA from trapping cash I don't actually owe in tax?
My real gain on this US sale is small because my basis is high, but at 15% of the sale price the buyer would hold back a huge amount and I'd wait ages for a refund. Is there a way to reduce what's wit...
Does holding U.S. real estate through an LLC protect me from FIRPTA? My attorney said it would.
I'm a Brazilian citizen looking to buy rental properties in Miami. My attorney in Brazil recommended I set up a Wyoming LLC to hold the properties, saying it would "protect" me from FIRPTA. But I've b...
Have a similar question?
ForeignLLCTax members get expert answers with IRS citations. One CPA consultation costs $200+. Full access is $9.99/month.
Become a Member — $9.99/moDisclaimer: All content on ForeignLLCTax.com is created by a tax professional and is provided for general educational and informational purposes only. It does not constitute tax, legal, or accounting advice, and should not be relied upon as such. Every tax situation is different — for advice specific to your circumstances, please consult a licensed CPA, Enrolled Agent, or tax attorney. By using this website, purchasing a subscription, or accessing any tools or services, you acknowledge that no client-professional relationship is established between you and ForeignLLCTax.com or its operators. This website is not affiliated with the IRS.
