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FIRPTA - Recent Experience ?

FIRPTA - Recent Experience ?

Old Apr 8th 2021, 5:54 pm
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Default FIRPTA - Recent Experience ?

Hi all,

I'm British, living in the UK, and have a property in FL which is in the process of being sold (hopefully closing in June). Has anyone any recent experience of selling a property in FL and moving the cash to the UK along with negotiating FIRPTA ?

I've extensively googled FIRPTA, so this isn't my first port of call.
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Old Apr 9th 2021, 11:21 am
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Default Re: FIRPTA - Recent Experience ?

There is a Florida vacation home owners forums (mainly British owners) that has an ongoing 4 page topic about this. I remember seeing it was taking around 6/9 months before refunds were sent out. Thread also mentions two local Kissimmee area tax expert companies who have worked with many British sellers. PM if you need more details but you're probably already aware of the forums.

Last edited by Floridablues; Apr 9th 2021 at 11:53 am.
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Old Apr 10th 2021, 9:01 am
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Default Re: FIRPTA - Recent Experience ?

FIRPTA is the buyer's responsibility. It is generally easier to let the buyer send the 15% to the IRS and to reclaim any overpaid US tax from the IRS in 2022 when the 2021 US tax return is filed. You could file an 8288-B, but this is a tough job and may not speed things up much at present. Because the pound has fallen against the dollar the gain is likely to be larger in pounds, so you'll want to budget to pay tax to HMRC.
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Old Apr 10th 2021, 2:11 pm
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Default Re: FIRPTA - Recent Experience ?

Originally Posted by Floridablues View Post
There is a Florida vacation home owners forums (mainly British owners) that has an ongoing 4 page topic about this. I remember seeing it was taking around 6/9 months before refunds were sent out. Thread also mentions two local Kissimmee area tax expert companies who have worked with many British sellers. PM if you need more details but you're probably already aware of the forums.
Thank you. But as I am a 'newbie', I have restrictions and I'm not able to PM. If you could PM me, I'd be grateful.
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Old Apr 10th 2021, 2:13 pm
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Default Re: FIRPTA - Recent Experience ?

Originally Posted by Cook_County View Post
FIRPTA is the buyer's responsibility. It is generally easier to let the buyer send the 15% to the IRS and to reclaim any overpaid US tax from the IRS in 2022 when the 2021 US tax return is filed. You could file an 8288-B, but this is a tough job and may not speed things up much at present. Because the pound has fallen against the dollar the gain is likely to be larger in pounds, so you'll want to budget to pay tax to HMRC.
Research is conflicting with regards to who's responsibility it is. But thank you anyway.
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Old Apr 11th 2021, 7:34 pm
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Default Re: FIRPTA - Recent Experience ?

Originally Posted by Freydad View Post
Research is conflicting with regards to who's responsibility it is. But thank you anyway.
Nothing conflicting. The buyer sends a cheque to the IRS. It is the buyer's responsibility to withhold.
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Old Apr 11th 2021, 8:10 pm
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Default Re: FIRPTA - Recent Experience ?

Seems pretty clear, you have said you don’t live in the US so you are a foreign seller who would not be required to file a tax return. The buyer will withhold tax and remit to the IRS, when you file your US tax return you will pay any extra owed (unlikely) or get a refund if the withholding was to high. You will then compete a tax return where you are resident, assuming there is a DTA anything you paid in the US should be a credit in that country so you are not double taxed, if the tax rate there is higher you then only have to pay the difference, if it’s lower you pay nothing extra.

Last edited by tht; Apr 11th 2021 at 8:13 pm.
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Old Apr 12th 2021, 7:43 pm
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Default Re: FIRPTA - Recent Experience ?

Originally Posted by Freydad View Post
Hi all,

I'm British, living in the UK, and have a property in FL which is in the process of being sold (hopefully closing in June). Has anyone any recent experience of selling a property in FL and moving the cash to the UK along with negotiating FIRPTA ?

I've extensively googled FIRPTA, so this isn't my first port of call.
IMO, I would ask the closer/title company or whomever is closing the sale regarding who handles it etc. Check too whether or not it needs to be disclosed to potential buyers that your property may be subject to FIRPTA withholding. Also, you may want to check if your state also has withholding requirements, too, due to a foreign owner/seller.
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