The Foreign Investment in Real Property Tax Act (FIRPTA) requires that an agent deduct and withhold a tax on the total amount realized by the foreign person on any disposition of real property within the United States. The amount to be withheld is 15% of the consideration in transactions, where the purchase price exceeds $300,000.
When running a quote in LodeStar's calculator, the amount will be quoted in Section E and will be 15% of the purchase price. Again, this assumes the consideration amount exceeds $300,000, and the seller is a foreign individual or entity denoted by a question on our calculator.
In order for this item to be displayed, you must check the following box within LodeStar's Calculator:
For more information on the FIRPTA Withholding, please consult: