alwaysomewhere

I am looking for help as I have sold a property in the US and do not want the standard 10% Foreign Investment in Real Property Tax Act to apply. I am based in Florida and probably need to have the services of an accountant who can fill out the necessary forms etc. to avoid this. Alternatively an online accountant service. I am not resident but do have an ITIN number. Last time I sold a property it took more than a year to get the tax back through filing a tax return. Anyone with any advice would be much appreciated.

Disenchanted

I'm sure you've read this document. Exceptions from FIRPTA Withholding

So if it's not on here you probably have no choice as the IRS's 10% cut is withheld by the selling agent as per Uncle Sam's instructions.

alwaysomewhere

thanks for that information. I guess i need the services of an accountant to help with this. Thanks again for the information - very useful

Cook_County

Have you filed an 8288-B?

alwaysomewhere

Thanks for the information. Can anyone point me in the direction of an accountant in Fort Myers Florida. I can find plenty of "regular" accountants but few that are specialists in real estate for foreign owners of real estate. I take on board that this site doesnt like advertising but maybe if someone knows the correct title for such an accountant I can then look it up in my area. Thanks again.

Steve_

This is rarely an issue for someone who owns a vacation home. Although it might be an issue if you rent it.

The purpose of withholding is to make sure the long-term capital gains tax is collected on the sale, the sale by a non-resident alien always must be reported on 1040NR schedule D, even if no capital gains is realized.

However, typically a non-resident alien has no other US-source income so the exemption certificate is automatically granted (assuming you're not otherwise exempt), because the long-term capital gains tax rate for someone in the 10% or 15% tax brackets is zero. Thus there is no tax, thus there is no point to withholding. (Unless of course, it's a really serious gain that puts you over the 15% tax bracket threshold).

Well if that's the case, how are you not resident for tax purposes?

Or are you a student/teacher and filing as a non-resident alien?

There are very few situations in which you could be a non-resident alien for tax purposes and reside in the US. Obviously if you're resident, FIRPTA isn't relevant.