Selling my property LLC with 20% down and four annual payments — buyer says all the FIRPTA tax is withheld NOW?
I'm a foreign seller. My disregarded LLC holds a US commercial property, and the buyer and I agreed on an installment deal: 20% at closing, the rest over four years. I expected tax (and withholding) to follow the payments. The buyer's escrow agent says FIRPTA withholding on the WHOLE price is due at the first payment — which would eat my entire down payment. Can that be right, and is there a way out?
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