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 would have to withhold 15% of the sale price. That seems like a huge amount of money held back. What exactly is FIRPTA, why does it apply to me, and is there any way to reduce the withholding? Also, does this mean I pay extra tax on the sale compared to a U.S. owner?
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