If I die while owning U.S. real estate through my LLC, does my family face FIRPTA AND estate tax?
Morbid question but important. I'm a 62-year-old citizen of Thailand with a rental property in Las Vegas held through a Wyoming SMLLC. My family is all in Thailand. If something happens to me, what happens tax-wise? I've heard that non-residents face U.S. estate tax on property with only a $60,000 exemption. And then when my heirs sell the property, they'd also face FIRPTA?
Is there a way to structure this so my family isn't hit with both? The property is worth about $400K.
Related Questions
Should I just hold the property until death for the step-up, or does the NRA estate tax wreck that plan?
I keep exchanging into bigger US properties and deferring gain. Someone said if I just hold until I die, the deferred gain disappears because of a basis step-up, so why ever pay the tax? But I'm a non...
If I own US real estate directly and die, does FIRPTA become an estate-tax problem too?
I'm a non-US person holding US rental property in my own name (well, in a disregarded LLC). I get that selling triggers FIRPTA. But what happens if I die still owning it? Is there a separate US tax at...
What exactly is FIRPTA and how does it affect me as a foreign LLC owner with U.S. real estate?
I'm a Canadian citizen who owns a single-member LLC in Wyoming. I bought a rental condo in Phoenix through the LLC last year. My accountant mentioned something called FIRPTA that could hit me with a b...
Can a non-resident actually do a 1031 exchange on US rental property, or is that only for Americans?
I'm a nonresident alien and I own a US rental property through a single-member LLC. I want to sell it and roll the gain into another US rental instead of paying tax now. Is a Section 1031 like-kind ex...
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...
Can I avoid FIRPTA by having my LLC elect to be taxed as a C-Corporation?
I've read that if my LLC is treated as a domestic C-Corp, the corporation can sell the property and the gain is taxed at the corporate level at 21%. Then when I eventually take distributions, I'd pay ...
I'm selling a property through my LLC — does the buyer withhold on the LLC or on me personally?
Quick question. I'm a Mexican citizen selling a house in San Diego that's titled in my Wyoming single-member LLC. The buyer's escrow company is asking for my personal ITIN to process FIRPTA withholdin...
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 $...
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'm selling shares of a US company, not real estate — can FIRPTA still hit me?
I'm a foreign investor selling my stock in a US C-corporation. No deed, no closing on a building — just a stock transfer. The buyer's counsel raised FIRPTA and wants some kind of certification from th...
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.
