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
So what are the tax duties for a non-resident alien who is an LLC owner?
Thank you for providing that link! Doing business internationally/with non-US citizens can be tricky.
Good to see that US assets are covered by taxing even non-resident aliens if they are dealing with US property
Great article! Thank you for providing the link to see the list from the IRS