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 big tax bill if I ever sell. I looked it up but the IRS page is dense and confusing.
Can someone explain in plain English what FIRPTA actually is, why it exists, and what it means for a foreign person who holds U.S. property through an LLC? I just want to understand the basics before I start planning anything.
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