FIRPTA: Foreign Investment in Real Property Tax Act
The federal Foreign Investment in Real Property Tax Act (“FIRPTA”) generally obligates any person who buys U.S. real estate from a foreign person to escrow 15% of the purchase price from the seller to motivate the foreign seller to file a U.S. tax return. A buyer who fails to comply will be liable for the foreign seller’s unpaid tax, and probably penalties and interest. This webcast will give you a general understanding of how to protect your buyers from FIRPTA. For more FIRPTA details, please read our article Don’t Forget About FIRPTA.
For those of you interested in including FIRPTA protection language in your contracts, consider ordering our law firm’s addenda package.
For those of you interested in FIRPTA affidavits, please send an email to Julia.