FIRPTA Withholding: Tax on non-resident aliens selling real property in the United States

The Foreign Investment in Real Property Tax Act (FIRPTA) of 1980 authorizes the United States to tax foreign persons who are non-resident aliens selling U.S. real property interests. In California, understanding this act can be helpful for professionals in the industry.

The IRS provides a comprehensive, yet concise, summary of the act, and includes the following information. You’ll never have a question again!

  • Real property interest
  • Rates of withholding
  • Exceptions from FIRPTA withholding (include the home use/$300,000 exception and IRS withholding certificate)
  • Reporting and paying tax on U.S. real property interests
  • Format for applications
  • Road map to regulations
  • Definitions of terms and procedures unique to FIRPTA

About The Author

Jonathan Brooks
Jonathan Brooks, President of First Probate Loans Jonathan maintains highly specialized expertise in California real property, finance/lending, and trust and estate laws. He has completed nearly 10,000 financial transactions to estates and trusts in more than 25 years of probate loan management work. Jonathan is a trusted source for attorneys throughout California, as well as for mediation and arbitration judges. A recognized industry expert, he serves as a single source for estate mortgage borrowing needs. California Bureau of Real Estate Broker # 01881423 Nationwide Mortgage Licensing System and Registry NMLS # 307111 Paralegal


  • Danie Matthews on September 26, 2017

    So what are the tax duties for a non-resident alien who is an LLC owner?

  • Riley Ellis on September 29, 2017

    Thank you for providing that link! Doing business internationally/with non-US citizens can be tricky.

  • Charly Neel on September 30, 2017

    Good to see that US assets are covered by taxing even non-resident aliens if they are dealing with US property

  • Mabel Smith on October 14, 2017

    Great article! Thank you for providing the link to see the list from the IRS

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