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How to Calculate FIRPTA

CALCULATE FIRPTA WITHHOLDING

with this 3 step flow chart below:

Don't be fooled by the purported value of a FIRPTA calculator, it's just easy 3 steps
If you have questions on the other aspects of FIRPTA we are glad to provide a free consult.

1. Is the Seller a Foreign National?

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No FIRPTA
Withholding

If the answer is no, do this
If the answer is no
If seller is a foreign national go to step 2
If seller is a foreign national go to step 2

2. Is the Seller Exempt From Withholding?

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If Seller is Not Exempt From Withholding Go to Step 3
If Seller is Exempt There is No FIRPTA Withholding
If the answer is yes, do this

No FIRPTA
Withholding

If the answer is no, do this

3. Do the Buyers qualify for the residency exception?  Themselves or members of their family occupying as a residence at least 50% of each year for the 1st and 2nd years.

FIRPTA
Withholding
is 15% of Purchase Price

Is Buyer does not qualify for the residential use exception then FIRPTA withholding is 15%
Is Buyer does not qualify for the residential use exception then FIRPTA withholding is 15%

$0-$300k Purchase Price
FIRPTA withholding is $0

If Buyer qualifies for the residential use exception these are the FIRPTA withholding rates.
If Buyer qualifies for the residential use exception these are the FIRPTA withholding rates.

$300-$1 mil Purchase Price (PP)
FIRPTA withholding is 10% of PP

Over $1 mil Purchase Price (PP)
FIRPTA withholding is 15% of PP

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