FIRPTA Withholding

[ynw 0]

Hi,

I am married to a US citizen with a AOS application pending. I have been working and paying US taxes for the past 7 years. We have joint ownership of our primary residence which we brought before we got married. We are interested in selling our flat but I would like to know more about the FIRPTA (Foreign Investment in Real Property Tax Act) withholding and our obligations before we put our place on the market. I would like to be able to sell our place for at least $300k which would be above the 'exception limit'.

I know I can't expect tax advice but can some one give me some more information, guide me as to where I can go to for information or tell me their own experience with this. I have thought about going to a lawyer but they are so expensive and the IRS website is terrible!

Thank you

[Jasman0717 9]

You might want to see councel with a CPA or financial investor.

[Lansbury 19]

Not sure what you want to know.

It is the buyer who the requirement is on and they are required by law to withhold 10% of the price if the value of the property is over $300,000 and they purchase the property from a foreign person.

However in your case it doesn't apply because

Foreign Person

A Foreign Person is a nonresident alien individual, foreign corporation that has not made an election under section 897(i) of the Internal Revenue Code to be treated as a domestic corporation, foreign partnership, foreign trust, or foreign estate. It does not include a resident alien individual.

All that information is on the IRS web site

If you are not yet a resident alien wait until you are to sell.

Edited October 18, 2007 by Lansbury

[ynw 0]

I was just confused. I thought all non-us citizens were considered to be foreign!

Thank you for that clarification Lansbury.