Hello!!
I finally finished something simple, easy to ready, to the point for one of the most complex tax matters that involves all of you guys a FIRPTA check list.
The idea is for you to have this available, as a guide, you can ALWAYS give us a call, I want to be your "GO TO FIRPTA EXPERT" and make sure you have our information should you need tax compliance services in the FIRPTA area.
I will be working on a similar guide, with more detail and with links to the actual law so you can verify the information.
Please let me know what you think, is this helpful?
(281) 578-1040 | info@taxss.com
Quick FIRPTA checklist
EVERY SINGLE U.S. real estate transactions is a FIRPTA transaction until you have either A or B;
A. Obtain a certificate of non-foreign status based upon any of the following:
i. U.S. Passport
ii. U.S. Birth certificate
iii. U.S. Naturalization certificate
iv. U.S. Permanent Resident Card aka "Green Card" if the seller(s) is in the U.S.
v. Meet the Substantial Presence Test
i. Have a valid Tax ID
ii. Be current with U.S. tax filing obligations.
B. Proceed with FIRPTA withholding compliance.
Common question about FIRPTA withholding.
Ø Seller has a U.S. Social Security number; FIRPTA does NOT apply.
o False, having a U.S. SSN does NOT automatically exempt a seller from FIRPTA withholding, a Tax ID, State Driver's License or U.S. Entry Visa do not determine U.S. tax residency, contact us for further verification.
Ø Seller has an ITIN – FIRPTA DOES applies;
o False, if seller has an ITIN the seller MAY qualify for a FIRPTA exemption, contact us for further verification.
Ø Seller meets SPT, FIRPTA does NOT apply.
o U.S. tax residency rules are complex and often misunderstood only take advice from an experienced tax professional, please contact us for further verification.
Ø The foreign spouse of a married couple can allocate his/her share to the U.S. spouse to avoid FIRPTA.
o False, the foreign spouse will be subject to FIRPTA withholding on their share of the value of the sale, please contact us for further verification.
Ø The seller is a "Domestic LLC." FIRPTA does not apply.
o False If the owner of a State LLC is a foreign individual and the LLC is a single member or a "sole proprietor" disregarded entity, IRS ignores the LLC and looks through to ultimate owner and FIRPTA rules apply to the foreign owner or the Limited Liability Company.
Ø If seller is a U.S. corporation, partnership, etc. The entity must still provide a certificate of non-foreign status.
Ø If the sales price of a RESIDENTIAL property is $300,000 or less AND the property will be buyer's main residence AND buyer is willing to sign a document stating he will occupy the property for at least 50% of the time for the next 2 years FIRPTA does NOT apply.
Remember, we do not charge to answer your questions, let us be a resource and make FIRPTA easy for you!
------------------------------
Mary Enzi
Tax Solutions – FIRPTA Consulting
Barker TX
+1 (281) 578-1040
mary.santiago@taxss.com
------------------------------