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

Products You May Like

Articles You May Like

KB Home CEO warns of MAJOR reset. (prices already down 30%)
$100,000 renovation on abandoned house. #Shorts
Flipping Cars at 17 years old! #cars #carflipping #sidehustle
AI Panic: Are YOU Being PSYCHOLOGICALLY MANIPULATED? #shorts
Tricked Into Asylum, Died From What He Fought! #shorts

Leave a Reply

Your email address will not be published. Required fields are marked *