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  • 1.  FIRPTA - Q&A

    Posted 02-20-2024 10:04

    Hello ALTA;

    We get this question often and I thought I share the information with you.

    Q; Why a person with a SSN is subject to FIRPTA?

    A; There are many instances in which a NRA (Non-resident Alien) may have a SSN; below a few or the most common ones;


    • The NRA is an international student in a U.S. institution, the NRA is eligible to have a SSN, a state driver's license and to work for the institution he/she is studying at, however, for tax purposes the student is required to file a 1040NR (Non-Resident) and the days of presence in the U.S. are moot. (students can live in the U.S. for years, and their days of presence do not count for tax purposes)
    • A NRA with a diplomatic status, they are by definition FOREIGN but eligible for a SSN.
    • A NRA with a U.S. work visa, NRA is issued a SSN and after the contract with the company that brought the NRA to the U.S. expires the NRA is transferred to a different country or is back to his/her country of origin, the SSN issued to the NRA is his/hers for life, but when the person leaves the country they are considered foreign even with their SSN.


    Remember, EVERY real estate transaction is a FIRPTA transaction UNLESS the seller has one of the following documents ;


    • U.S. birth certificate
    • U.S. passport
    • U.S. naturalization certificate
    • U.S. Permanent Resident Card (aka "Green Card")


    SPT (Substantial Presence Test) should be handled by a tax professional to make sure the seller meets the federal tax requirements to be exempt.

    What Is FIRPTA?

    Que es FIRPTA?

    If you have questions, give us a call.... 

    Mary Enzi CAA
    Tax Solutions – FIRPTA Consulting
    +1 (281) 578-1040
    Barker TX
    ALTA Marketplace