We love our Northern visitors at SunBird. You help to make our community vibrant and full of energy and overall robust. But if you are thinking of buying or selling real estate, there are a few things to consider.
What Is FRIPTA?
FIRPTA is essentially a mechanism to capture capital gains from foreign investors when they sell property. FIRPTA applies when the property being purchased is being sold by a “Foreign Person.”
Maybe, let’s chat. However, unless an exemption applies, FIRPTA requires that a withholding of up to fifteen percent (15%) of the sales price in all transactions in which the seller of a U.S. real property interest is a “Foreign Person.”
Who Needs a TIN (Tax ID Number)?
IRS regulations require all buyers and foreign sellers of U.S. real property interests to provide their TINs, names, and addresses on withholding tax returns, applications for withholding certificates, notice of non-recognition, and other related IRS documents when disposing of a U.S. real property interest.
Does the Real Estate Professional and Title Company Matter?
There are specialized markets within the real estate business, and certain agents will know more about these markets and be better able to negotiate and provide services within them.
If you have any questions about FIRPTA withholding or buying and selling as a Canadian or any foreign citizen, please feel free to contact Catherine Schaeffer at DanSco Real Estate Group. Let me help you avoid a kerfuffle!