FIRPTA Withholding on Dispositions of U.S. Real Property Interests

Houston Tax Attorney


FIRPTA witholding rules may apply to a disposition of a U.S. real property interest by a foreign person.  Such transactions are subject to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) income tax withholding. FIRPTA authorized the United States to tax foreign persons on dispositions of U.S. real property interests.

Here’s what buyer and sellers need to know in situations where the buyer might be considered a foreign person.

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