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 tax would be (maybe $15K-$17K).
Someone mentioned Form 8288-B to get the withholding reduced. How does it work? When do I need to file it? Do I need an attorney or can I do it myself? And what happens if the IRS doesn't approve it before closing?
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