Real Estate Transactions Under contract but have not yet closed.
Two withholding choices:
File for Reduced Withholding Certificate at closing.
15% Seller withholding stays with closing agent for about 90 days until IRS responds.
IRS authorized release amounts, if any, are returned to Seller right away! Speedy.
Or Buyer/Payor remits 15% withholding of the total sale price from Seller's proceeds to the IRS within 20 days.
Year end tax return must be filed for refund. May take 3-4 months to receive a refund.
The process of a pending FIRPTA real estate transaction closing. No reduced withholding certificate filed.
If you have a pending real estate transaction with a foreign seller subject to FIRPTA and want to or are considering filing a reduced withholding certificate here is the full informative video version. Informative and helps you make a decision.
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