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The FIRPTA Desk: handled early, it's arithmetic

When a foreign person sells U.S. real estate, federal law makes the buyer withhold a slice of the gross price for the IRS — commonly 15%. Handled early, it's arithmetic; discovered late, it's a closing-table crisis. This desk exists so every foreign-seller file gets the early version.

Who this desk is for

  • Foreign owners selling South Florida property — individuals, and entities whose classification needs resolving up front (that 'foreign' LLC may be a U.S. person)
  • Agents listing for international owners who need FIRPTA raised before the contract is signed, not at the table
  • Buyers purchasing from a foreign seller — under FIRPTA, the buyer is the withholding agent the IRS holds responsible, which is why we screen seller status on every single file
  • International parties who want remote signings and service in English, Español, Русский, or Українська

How the desk runs

  • Step 1 — Screen at file opening: seller status is screened on every file, both to protect buyers and to keep foreign sellers out of amended-filing purgatory
  • Step 2 — Compute and explain: generally 15% of the gross sales price — not the gain — with the exceptions flagged for your tax professional: the buyer's-residence exception at $300,000 or less, the reduced 10% rate for $300,001–$1,000,000 with the same use, and non-foreign certification where the seller is actually a U.S. person
  • Step 3 — Buy back time: withholding-certificate applications to the IRS take time, so they get filed early — and the closing can escrow the withheld funds pending the IRS determination, keeping your sale on schedule while preserving the reduced-withholding benefit
  • Step 4 — Run the closing-table mechanics: the withholding is computed, collected from proceeds at closing, the Forms 8288 and 8288-A remittance package prepared, and the stamped 8288-A copies delivered — they become your credit when you file your U.S. return
  • Step 5 — Handle the border logistics: RON or coordinated mail-away signings, apostilles, translated entity documents, and international wire coordination under our verified-instruction discipline

Start here

Run the FIRPTA Estimator — withholding education with the statutory brackets — to see how the numbers work on your price. Under contract already? Upload the contract and flag the foreign-seller status so the desk opens with the file.

One boundary, stated plainly: we run the mechanics with precision; the strategy — certificate applications, treaty questions, entity classification, your ultimate tax position — belongs with your tax professional or tax counsel. We coordinate with them as a standing practice, and can point you toward the questions to ask if you don't yet have one.

Questions

Frequently asked

I'm a green-card holder. Does FIRPTA apply to me?

Lawful permanent residents are generally U.S. persons for FIRPTA — typically no withholding, certified via the non-foreign affidavit. Status edge cases exist (expatriation, abandoned residency), so we confirm rather than assume.

Can the closing happen while a withholding-certificate application is pending?

Yes — the standard structure escrows the withholding amount pending the IRS determination, then remits or releases per the certificate. It keeps your sale on schedule while preserving the reduced-withholding benefit.

Does FIRPTA apply when a foreign person BUYS?

FIRPTA withholding triggers on the foreign person's SALE (disposition). But buyers beware in the other direction: if you buy FROM a foreign seller, YOU are the withholding agent the IRS holds responsible — one more reason the title team must identify seller status early on every file.

What happens if FIRPTA gets missed entirely?

The IRS can pursue the BUYER for the tax plus penalties — which is why diligent title teams screen every file for seller status. Ours does, on every single file, both to protect buyers and to keep foreign sellers out of amended-filing purgatory.

Raise FIRPTA before you sign — not at the table

Run the estimator, then get the desk on your file the day you list.

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