1,239,901
Since you are a avatar. I refrain giving my opinion. Talk to a lawyer.
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Kathleen Daniels, Prob...
San Jose, CA
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Tony and Suzanne Marri...
Scottsdale, AZ
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Roy Kelley
Gaithersburg, MD
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Nina Hollander, Broker
Charlotte, NC
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Anthony Acosta - ALLAT...
Atlanta, GA
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Teri Pacitto
Westlake Village, CA
2,220,323
Thank you Sam Shueh
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Roy Kelley
Gaithersburg, MD
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Nina Hollander, Broker
Charlotte, NC
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Fred Griffin Florida R...
Tallahassee, FL
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Anthony Acosta - ALLAT...
Atlanta, GA
352,976
All good answers previously and not touching this Q from anonymous. Defer to an attorney or tax professional who has specific knowledge on this subject.
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Roy Kelley
Gaithersburg, MD
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Nina Hollander, Broker
Charlotte, NC
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Fred Griffin Florida R...
Tallahassee, FL
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Anthony Acosta - ALLAT...
Atlanta, GA
4,882,355
It is time to see a real estate attorney.
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Roy Kelley
Gaithersburg, MD
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Nina Hollander, Broker
Charlotte, NC
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Anthony Acosta - ALLAT...
Atlanta, GA
-
Teri Pacitto
Westlake Village, CA
1,712,676
Talk to an attorney.
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Roy Kelley
Gaithersburg, MD
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Nina Hollander, Broker
Charlotte, NC
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Anthony Acosta - ALLAT...
Atlanta, GA
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Teri Pacitto
Westlake Village, CA
3,988,007
That is a title person question. Ask the closer.
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Roy Kelley
Gaithersburg, MD
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Nina Hollander, Broker
Charlotte, NC
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Anthony Acosta - ALLAT...
Atlanta, GA
5,772,575
Talk to an attorney.
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Roy Kelley
Gaithersburg, MD
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Nina Hollander, Broker
Charlotte, NC
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Anthony Acosta - ALLAT...
Atlanta, GA
3,986,258
If you are going to be annonymous on this you need further professional help I can't give
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Roy Kelley
Gaithersburg, MD
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Nina Hollander, Broker
Charlotte, NC
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Anthony Acosta - ALLAT...
Atlanta, GA
5,049,183
It's time to consult a real estate attorney familiar with these issues
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Roy Kelley
Gaithersburg, MD
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Nina Hollander, Broker
Charlotte, NC
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Anthony Acosta - ALLAT...
Atlanta, GA
4,272,548
I am not familiar with these restrictions, I would consult an immigration attorney.
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Roy Kelley
Gaithersburg, MD
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Anthony Acosta - ALLAT...
Atlanta, GA
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Teri Pacitto
Westlake Village, CA
1,543,727
Escrow would answer that in CA or an attorney.
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Roy Kelley
Gaithersburg, MD
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Nina Hollander, Broker
Charlotte, NC
2,684,009
See an Attorney or Title Closer.
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Roy Kelley
Gaithersburg, MD
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Nina Hollander, Broker
Charlotte, NC
5,005,642
Definitely time to visit with a real estate attorney.
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Roy Kelley
Gaithersburg, MD
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Nina Hollander, Broker
Charlotte, NC
900,128
Good question. Consult a qualified professional. It could be serious, don't go by amateur guesses.
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Roy Kelley
Gaithersburg, MD
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Anthony Acosta - ALLAT...
Atlanta, GA
711,852
It will be the status of the foreign person at the time the property is sold. This should be addressed by an expert in FIRPTA law once they get ready to sell.
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David M. Dwares
Fort Lauderdale, FL
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Roy Kelley
Gaithersburg, MD
5,104,931
Speak with an attorney. Perhaps you'd like to let us know who you are?
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Roy Kelley
Gaithersburg, MD
599,274
That is a unique situation I've never heard of. I'm curious to see what others say.
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Roy Kelley
Gaithersburg, MD
6,393,404
Those types of rules are likely to change soon in our world where we are now picking fights with some neighbors while embracing old foes. Where are these people from, that may make a difference.
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Roy Kelley
Gaithersburg, MD
212,500
Hi. I don't know. But irs.gov stated this:
The amount realized is the sum of:
- The cash paid, or to be paid (principal only);
- The fair market value of other property transferred, or to be transferred; and
- The amount of any liability assumed by the transferee or to which the property is subject immediately before and after the transfer.
If the property transferred was owned jointly by U.S. and foreign persons, the amount realized is allocated between the transferors based on the capital contribution of each transferor.
More at https://www.irs.gov/individuals/international-taxpayers/firpta-withholding
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Roy Kelley
Gaithersburg, MD
5,583,278
1,502,998
Escrow/attorneys should be able to answer those questions for you. I am not a FIRPTA expert and will, as such, defer to those that are.
4,800,082
3,345,091
938,537
Hello,
You have asked a very good question and in my opinion, this is what this forum should be used for.
According to the IRS rules FIRPTA does not apply to a US citizen or an individual holding a valid green card residing in the US at time of the sale. FIRPTA is designed to capture any capital gains tax from the seller which would be impossible for them to collect if the seller was not currently residing in the US. The IRS will, however, go after the BUYER if there is tax liability on the part of the seller that was not paid or withheld on behalf of the seller.
The IRS for tax purposes is very generous with its definition of "foreign" person if one is not a citizen or valid green card holder. One is NOT considered a "foreign" person subject to FIRPTA if they are currently residing in the US 183 days or a combination of 183 days based on a minimum of 31 days current residency plus the two preceding years based on a formula (maximum credit for the preceding full year is 121 days and the second preceding year is 60 days)
According to the IRS you could be here in the US without proper documentation as long as you could prove the residency test of living in the US a total of 183 days in the current and two preceding years using their residency formula.
Even if you were a "foreign" person subject to FIRPTA there are some exemptions:
1. if the sale is not over $300,000 the buyer can get an exemption but they would have to have a proper buyer's affidavit, meet home owner residency test, and take title as individual(s). This is probably unlikely with a sale in the Washington DC area as far as price!
2. seller can apply for a withholding certificate but would have to have a tax identification number and there is quite a bit of time and red tape involved.
The bottom line with the IRS is that they will go after the BUYER if there is any tax liability due!!! So buyer's agents need to be very diligent and insist that the title company make a seller's affidavit be prepared where the seller states under penalty of perjury that they meet the IRS test of not being a "foreign" person and that the sale does not involve FIRPTA. In our area title companies do NOT do this, and it is a matter of time before someone gets a nasty surprise from the IRS.
Buyers are not necessarily exempt from the IRS coming after them if the seller had tax liability if they bought a house for sale under $300,000 from a foreign person. If the buyer is an investor or even an owner occupant who takes title as a partnership, LLC, or corporation the exemption does not apply.
Having stated how FIRPTA works in general, your clients do need to consult a professional(tax attorney, title company) in your area who knows the law, and can apply the specifics(type of property, how you take title matters, future residency plans, etc) of your clients' situation and status. Good luck!
5,216,398
1,617,916
989,652
4,434,127
3,071,489
815,253
7,836,134
Talk with your title company for good advice and assistance. I recommend Village Settlements at their main office in Kentlands.