5 tips to structure your FIRPTA foreign national sale successfully
Recent changes to FIRPTA withholding requirements now require many title companies to withhold 15% of the gross sales price. Our recent blog post and video on the changes may be helpful. Here are some ways to structure your sale for a successful FIRPTA transaction:
- Hire a qualified CPA (Certified Public Accountant) before even listing the property to first, determine if FIRPTA applies. Second, determine what the withholding percentage will be. Third, estimate your capital gains (or losses) in advance. And fourth, determine whether the seller should apply for a withholding certificate.
- Determine whether any potential buyers should be required to sign an “Intent to Reside” Affidavit as a contract contingency.
- Advise any potential buyers that this will be FIRPTA transaction with conditions outlined in the sales contract.
- Allow 90 days for the closing so the seller may obtain a withholding certificate decision, if applicable.
- Hire a seller representation “team” that consists of a title company experienced in FIRPTA sales, a CPA and possibly a tax attorney if the withholding amount is substantial enough to warrant that additional expense.
Please contact us at 305-521-2080 for recommendations on putting together your FIRPTA team or [email protected]
Disclaimer: The Closing Company, Inc. is not a law firm and is not providing legal or tax advice on this blog. For legal advice, please consult with a licensed Attorney. For tax advice, consult with a Certified Public Accountant. Hiring an attorney is an important decision which should not be based solely on advertising. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.
