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FIRPTA - Are You Up to Speed on This Tax Code?

FIRPTA, or the Foreign Investment in Real Property Act of 1980 closed a loophole in the tax code regarding capital gains realized by the sale of real property by foreign nationals.   If you are the listing agent and your sellers are foreign nationals, you need to understand this code.   Likewise, if you are a buyer's agent, this code can have implications for your buyer if the sellers are foreign nationals.   The code places responsibility for withholding of 10% of the sales price on the buyers if the transaction meets FIRPTA requirements.   Failure to do so, could leave the buyer liable for any taxes.  Please check out the FIRPTA page of IRS.gov.   We have a lot of Canadian homeowners in the Valley of the Sun, and understanding this tax code, or at least making your clients aware of it, adds to your value as a REALTOR.
Posted Friday Jul 02