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 $400,000 but my gain is only about $50,000. Withholding 15% of $400,000 is $60,000 — more than my entire profit! Is there a way to get a reduced withholding amount? How long does it take to get the excess back?
Related Questions
The buyer says FIRPTA should be 15% of my profit, not 15% of the sales price. Is that right?
I am selling a condo in Florida as a nonresident seller from Germany. The buyer is trying to be cooperative, but they are also using internet summaries that seem to blend final tax with FIRPTA withhol...
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...
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...
If my sale is a 1031 exchange, does the FIRPTA 15% withholding still apply?
I keep getting conflicting answers. My closing agent says because it's a like-kind exchange, no FIRPTA withholding is needed. My CPA partner says it depends. Who is right? I'm a foreign person selling...
I'm selling my interest in a U.S. LLC that owns real estate — does FIRPTA apply to the sale of my LLC membership interest?
I own a 30% membership interest in a Florida LLC that holds two apartment buildings. I want to sell my interest to another investor (who is a U.S. person). The LLC itself isn't selling the properties ...
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...
I'm taking $150k cash boot in my exchange — why is withholding on the FULL $2.5M sale price, not just the boot?
My deferred exchange: I'm selling a property for $2.5M and buying a $2.35M replacement, so I get $150k back in cash. Only that $150k is taxable now. So why is everyone telling me FIRPTA withholding is...
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 ...
Does FIRPTA treat commercial real estate differently from residential property?
I own a small strip mall in Texas through my foreign-owned LLC and I'm thinking about selling. Most of the FIRPTA information I find online talks about houses and condos. Are the rules different for c...
How does FIRPTA apply to a multi-member LLC taxed as a partnership? Two foreign owners selling property.
My business partner and I (both non-resident aliens from France) own a 50/50 multi-member LLC in Florida that holds a commercial property. We're planning to sell the property next year. I understand F...
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.
