Hello ALTA!
I was out of town and so happy to be back, is still hot and humid in my neck of the woods but there is no place like home. 😊
During my flight back to Houston, I was thinking about Benjamin Franklin's phrase, "Nothing is certain except death and taxes", one of the first things learned when I moved to the U.S.
One thing I know is every penny from every source has a tax impact in our lives, if you receive a gift, if you are the beneficiary of a pension plan, if you are the recipient of an asset, if you inherit real estate, IF YOU ARE A FOREIGN SELLER of a real estate property in the U.S.
Doing my digging, I found this at the IRS website, and I quote:
"Persons purchasing U.S. real property interests (transferees) from foreign persons, certain purchasers' agents, and settlement officers are required to withhold 15%"
https://www.irs.gov/individuals/international-taxpayers/firpta-withholding
I AM a TAX person, I am NOT a Title person, so I must ask you, as TITLE PEOPLE, knowing you go almost line by line reviewing the sales contract and you have so many tasks and responsibilities, is letting the buyer know that the seller is foreign (FIRPTA) one of them?
- Ø NOT preparing FIRPTA paperwork
- Ø NOT explaining FIRPTA
- Ø NOT taking any steps to comply with this federal rule, JUST TO INFORM BUYER THAT SELLER IS FOREIGN,
That is my question.
Let me know what your internal policies are regarding FIRPTA, and remember, you can always give us a call, or send us an email if you have any questions, we are always glad to answer all your FIRPTA questions.
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Mary Enzi, CAA
Tax Solutions – FIRPTA Consulting
[email protected]
+1 (281) 578-1040
Barker TX
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