We wanted to share a common question we receive here at Foreign Tax CPA, in hopes it will help some of your foreign clients!
A client of ours is currently selling his plot of land in an RV community and is asking if his potential buyer can sign a FIRPTA Residential Affidavit (eliminating the requirement for the IRS's 15% FIRPTA withholding tax), as his buyer plans to park her own RV on the plot of land and live in her RV for the winter months.
Unfortunately, there are no eligibility for exemptions from the FIRPTA withholding on vacant land, even if the buyer intends to place or build a residence (temporary or permanent) on the land. The thought process being, on the date of closing, a person can't live "in" the land.
So we're assisting our client with the proper filing of the FIRPTA documents, ensuring a seamless and timely refund for him; just as we can for your clients! So please don't hesitate to contact our office with any foreign tax filing requirements!
We're the FIRPTA FIXERS and we're here to help!
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Janet Noack CPA
Foreign Tax CPA, LLC
Cocoa Beach FL
+1 (321) 784-8329
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