Tax Services
FIRPTA & Foreign Real Estate
FIRPTA withholding on foreign investment in US property
The IRS withholds 15% of your US property sale before you see a dollar. We get it right — and get it back.
FIRPTA planning, withholding certificates, and compliance for foreign investors buying, holding, and selling US real estate — so withholding matches your actual tax, not a flat 15% of the gross price.
Withholding certificates that reduce FIRPTA to the real tax due — and fast refunds when too much was held.
Core Directives
- Withholding reduction
- Buyer & seller compliance
- Structuring for investors
Ready when you are
Operational Milestones
Assess
Before closing, we determine your actual US tax on the sale and whether a reduced-withholding certificate applies.
Certify
We file Form 8288-B with the IRS to reduce or eliminate the 15% withholding based on your true tax liability.
Reconcile
We prepare the nonresident return (1040-NR / 1120-F) that reconciles what was withheld to what's owed, and recover any excess.
Included Services & Outcomes
FIRPTA Withholds 15% of the Gross — Not the Gain
Under FIRPTA, buyers must withhold 15% of the gross sales price when a foreign person sells US real estate — often far more than the actual tax owed. Without a withholding certificate, that cash is locked with the IRS for a year or more.
Questions
FIRPTA & Foreign Real Estate FAQ
What is FIRPTA?
The Foreign Investment in Real Property Tax Act requires buyers to withhold 15% of the gross sales price when a foreign person sells US real estate, as a prepayment against the seller's US tax. The withheld amount is often much more than the actual tax owed on the gain.
Can I reduce the 15% FIRPTA withholding?
Yes. By filing Form 8288-B for a withholding certificate before closing, you can reduce withholding to the actual tax on your gain. We handle the application and coordinate with the closing agent so the reduced amount applies at the table.
How do I get my FIRPTA money back if too much was withheld?
You recover excess withholding by filing a US nonresident return (1040-NR or 1120-F) that reconciles the tax owed against what was withheld. We prepare the return and pursue the refund; a withholding certificate up front avoids the wait altogether.
Does FIRPTA apply if I'm just renting out US property?
FIRPTA withholding applies to the sale, not rentals — but foreign owners of US rental property face 30% withholding on gross rent unless they elect to be taxed on a net basis. We make that election so you're taxed on profit after expenses and depreciation.
Do I need a US tax ID to buy or sell US real estate?
Yes. Foreign buyers and sellers generally need an ITIN to file the required returns and claim refunds. We handle ITIN applications as part of the engagement so nothing stalls at closing.
Put SMAART Tax on your firpta & foreign real estate
Book a free consultation. We'll review your situation, quote a fixed fee, and show you exactly what we'd do differently.