Selling US Real Property – FIRPTA tax and 1040NR tax return

Selling Real Estate
Nonresident Aliens (i.e. non-US citizen; non-green card) selling US residential real estate are required to file US tax filings:
– IRS Form 1040-NR
– supporting schedules, including Schedule D
– others

Nonresident Alien (Foreign person) selling real estate located in the US is subject to tax withholding under FIRPTA. The buyer is obligated to withhold 15% FIRPTA tax on the GROSS Sale price. The 15% may be lower (0% or 10%) depending on the particular situation.

The Foreign Person (Seller) may request for a lower or no tax withholding, by timely filing with the IRS the required Form 8288-B and supporting information.

Check out this IRS site for more guidance
https://www.irs.gov/individuals/international-taxpayers/firpta-withholding

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