Good morning everyone;
I want to revisit a matter that is frequently asked and creates confusion, many times, when title agents or real estate agents call our office with a possible FIRPTA transaction they make emphasis in the fact that the seller has either an ITIN or a SSN, remember, ONLY any of the following documents will immediately exempt a seller from FIRPTA withholding without further questions ask;
v U.S. passport
v U.S. birth certificate
v Naturalization certificate
v Valid Permanent Resident Card aka "Green card"
If the seller has a U.S. tax ID but none of the above, the seller could potentially be exempt from FIRPTA withholding under the provisions of the IRS SPT rules, however, not everyone who spends more than 183 days in the country can be exempt from FIRPTA.
SPT rules can be confusing and complex, we advise to consult a reputable, licensed and experience tax firm to corroborate if the seller is subject to FIRPTA or can be exempt.
------------------------------
Mary Enzi CAA
Tax Solutions – FIRPTA Consulting
[email protected]+1 (281) 578-1040
Barker TX
------------------------------