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Old Feb 28th 2023 | 11:05 am
  #1  
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Default FIRPTA

Evening all,

British Citizen, US Resident Alien, returning to the UK in June. Selling my US home.

Does anyone have experience with FIRPTA when selling a house in the US? Apparently there is a law on the books that requires 15% of the home sale price to go back to the IRS. From what I can gather this is ONLY for foreign nationals and not US resident aliens (which I am). Would appreciate anyone that has gone through this process to share their experience. TIA.
 
Old Feb 28th 2023 | 10:18 pm
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Default Re: FIRPTA

No personal experience or knowledge on this but it very much sounds like it applies to "foreign persons" and as a resident legal alien I don't believe it applies to you if you sell it before returning to the UK. It also sounds like a tax withholding, not a tax so even if 15% tax were withheld then when you filed your IRS return you may get it back depending on the capital gain of the sale.

https://www.irs.gov/individuals/inte...sfers%2C%20etc.


 
Old Feb 28th 2023 | 11:06 pm
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Default Re: FIRPTA

Thanks yeah that’s my interpretation as well. Just got a little panicked by my realtor. If we have to put $150k aside that puts somewhat of a damper on our move haha. Appreciate your thoughts.
 

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