FIRPTA Support for Your Foreign Seller Transactions
Identify FIRPTA early, keep your closing on track and give your foreign sellers access to CPA-led tax support before and after the sale.
Available in English & Spanish.
Have a foreign seller transaction underway? Call our team at 321-248-4860.
Get the Free FIRPTA Guide
A practical resource for realtors working with foreign sellers. Answer three quick questions and we’ll send the guide to your email.
Your answers help us understand the FIRPTA situations you encounter and provide relevant support.
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FIRPTA Without the Guesswork
Know which questions to ask early, what information to gather and when to involve a tax professional. This practical guide helps you prepare for conversations with foreign sellers and closing teams.
FIRPTA in Simple Terms
Understand the purpose of FIRPTA withholding and why the amount withheld is not automatically the seller’s final tax.
Questions to Ask Early
Identify key details about the seller, property ownership, tax identification and closing timeline.
Two Potential Paths
Learn why some transactions follow the standard withholding process while others may warrant evaluating a withholding certificate.
Issues to Flag Before Closing
Recognize missing information and timing concerns that deserve professional review.
Documents Before and After Closing
See which records help support the withholding process, tax return preparation and the claim for withholding credit.
English & Spanish Editions
Share the guide with your foreign sellers in the language they prefer.
What Your Foreign Sellers Should Know About FIRPTA
The Foreign Investment in Real Property Tax Act, or FIRPTA, generally requires withholding when a foreign person sells U.S. real estate. Whether a seller is considered foreign depends on their U.S. tax status, not simply their nationality.
The general withholding rate is 15% of the amount realized on the sale, although exceptions, reduced rates and IRS withholding certificates may apply depending on the transaction.
FIRPTA withholding is not automatically the seller’s final tax.
The final tax depends on the seller’s circumstances and the tax treatment of the sale. Withholding is claimed as a credit against the applicable U.S. tax liability, and an overpayment may result in a refund.
FIRPTA Support Before, During and After Closing
The right approach starts with the facts of the transaction. We help review the seller’s situation, coordinate the applicable requirements and address the tax steps that remain after closing.
HOW IT WORKS
Before
Closing
Review the seller’s tax status, ownership structure, expected gain and closing timeline. Address ITIN needs, including Form W-7 applications, and evaluate whether a Form 8288-B withholding certificate application is appropriate.
At
Closing
Coordinate with the realtor and title or closing team on the applicable withholding, supporting information and Forms 8288 and 8288-A reporting requirements.
After
Closing
Review withholding records, prepare the applicable U.S. tax return, such as Form 1040-NR, and claim the withholding credit. Determine whether the seller has an additional balance due or qualifies for a refund.
A FIRPTA Tax Resource for Your Real Estate Transactions
You manage the real estate transaction. We help manage the FIRPTA tax process.
Give your foreign sellers access to professional tax support while keeping communication clear between the client, your team and the closing professionals.
Direct Coordination
A clear point of contact for FIRPTA tax questions and coordination with the seller, realtor and title or closing team.
Earlier Preparation
Identify tax documentation and timing concerns early to help reduce last-minute FIRPTA issues.
Support Beyond Closing
Help your clients connect with tax support for the return filing and withholding credit process after the sale.
English & Spanish Support
Make it easier for clients to understand the process, gather information and discuss their questions.
Have Past Clients Who Had FIRPTA Withheld?
Closing the sale may leave tax steps to complete. If you have past foreign sellers with FIRPTA withheld at closing, UpFront CPA can help them review their withholding documents, address ITIN needs where applicable and prepare the U.S. tax return required for their situation.
The amount withheld at closing does not, by itself, determine how much your client owes or may receive back.
Refund claims are subject to IRS filing deadlines, so an early review matters.
Be Ready for Your Next FIRPTA Conversation
Get the practical guide for realtors working with foreign sellers. Know what to ask, what to gather and when to bring in professional tax support.
This page and the FIRPTA guide provide general educational information and do not constitute tax or legal advice. FIRPTA requirements, withholding rates, filing obligations and available options depend on the facts of each transaction. A withholding reduction or refund is not guaranteed. Consult a qualified professional about your specific circumstances.
