FIRPTA! What a funny word! What does it mean? Here is a brief overview for you 🙂
FIRPTA stands for Foreign Investment in Real Property Tax Act. It has been around since 1980, but has had changes since February 2016 that have made more people take notice.
It applies to foreign persons selling US real property. So if you are not from the US and selling property here, the title company will withhold 10% of the purchase price to ensure that US taxes are paid on the transaction.
The sellers disclosures should clarify this in the transaction. Just something to be very aware of, as that would not be a fun surprise at the end!
Obviously, you will want to consult your tax professional or attorney as to what this means to your specific situation.
More info can be found here: https://www.irs.gov/individuals/international-taxpayers/firpta-withholding
And feel free to call, email or text me if you have any questions on how this may affect you! Or any other Utah County Real Estate questions!
BHHS REALTOR LIC 6347986