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Federal · IRS

FIRPTA Withholding

26 U.S.C. § 1445; 26 CFR § 1.1445-1

Under the Foreign Investment in Real Property Tax Act, a transferee acquiring a U.S. real property interest from a foreign person must generally deduct and withhold a tax equal to 15% of the amount realized on the disposition and remit it to the IRS (the rate was 10% for dispositions before February 17, 2016). A reduced rate or exemption applies in specified cases, including no withholding when the buyer acquires the property for use as a residence and the amount realized does not exceed $300,000.

Status · active
Subject · property tax assessment

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FIRPTA Withholding · Federal · RegWatch