The PATH Act increased the FIRPTA withholding rate from 10% to 15% for most real estate sales to foreign buyers. It exempts personal residences sold for less than $1 million from the higher rate. The Act also makes beneficial changes like allowing larger foreign ownership of REITs and permitting some foreign pension funds to invest in REITs without FIRPTA. Real estate agents could be liable for unpaid FIRPTA taxes if they have knowledge of false tax certificates or act as a withholding agent. The higher 15% withholding rate takes effect for sales occurring on or after February 17, 2016.
Puerto Rico: Value Added Tax - Impact on the Hotel and Tourism IndustriesAlex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”)effective April 1, 2016, for state tax purposes. The SUT will continue to be in place for municipal tax purposes after March 31, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the impact on the hotel and tourism industries.
Puerto Rico: Value Added Tax - Impact on Wholesale and Retail IndustriesAlex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”) effective April 1, 2016, for state tax purposes. The SUT will continue to be in place for municipal tax purposes after
March3 1, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the wholesale and retail industries.
The Taxperts Group can guide you through tax audits and appeals and help minimize your tax bills for years to come. Our accountants have legal and accounting expertise to help people with their taxes in Toronto, Ontario.
Puerto Rico: Value Added Tax - Impact on the Hotel and Tourism IndustriesAlex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”)effective April 1, 2016, for state tax purposes. The SUT will continue to be in place for municipal tax purposes after March 31, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the impact on the hotel and tourism industries.
Puerto Rico: Value Added Tax - Impact on Wholesale and Retail IndustriesAlex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”) effective April 1, 2016, for state tax purposes. The SUT will continue to be in place for municipal tax purposes after
March3 1, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the wholesale and retail industries.
The Taxperts Group can guide you through tax audits and appeals and help minimize your tax bills for years to come. Our accountants have legal and accounting expertise to help people with their taxes in Toronto, Ontario.
The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 - An...D Murali ☆
The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 - An analysis - K. R. Girish - Article published in Business Advisor, dated April 10, 2015 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Puerto Rico: Value Added Tax - Impact on the Manufacturing IndustryAlex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”)
effective April 1, 2016, for state tax purposes.
The SUT will continue to be in place for municipal tax purposes after March 31, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the manufacturing industry.
Tax Guide to Overseas Real Estate Investments for U.S. InvestorsDurise
Before you even begin to consider a jump into the foreign real estate investment pool, it’s important to become as knowledgeable about the entire process as possible. One item that is particularly important to research and understand is the tax implications that go along with property investing overseas. To that end, we’ve put together this tax guide to help U.S. real estate investors gather some much needed tax information.
Dodd frank act impact on seller financing for investorsRichard Roop
In this month’s Ultimate Training Webinar we will be covering “Dodd Frank Acts Impact on Seller Financing for Investors” and when you attend you will learn:
•How the Safe Act and Dodd-Frank will affect seller financing going forward
•Who is the Consumer Financial Protection Bureau (CFPB) and what is the Dodd-Frank Act?
•How to safely grow your business in spite of the new Dodd-Frank Act
•How to properly use the ultimate strategy and be in compliance with the Dodd-Frank Act
•What is the difference between the SAFE Act and the Dodd-Frank Act
•How to Thrive as a Real Estate Investor Under the SAFE Act!
•What you MUST know to use seller carry-back from here on out!
Puerto Rico: How the proposed Value Added Tax will impact the Renewable (Gree...Alex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”)
effective April 1, 2016, for state tax purposes.
The SUT will continue to be in place for municipal tax purposes after April 1, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the renewable green energy industry.
Puerto Rico: Value Added Tax - Impact on the Restaurant IndustryAlex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”)
effective April 1, 2016, for state tax purposes.
The SUT will continue to be in place for municipal tax purposes after April 1, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the restaurant industry.
How the Coronavirus Eviction Ban Impacts LandlordsChuck Hattemer
Governor Gavin Newsom issued an executive order that authorizes local governments to pause evictions for renters.
The eviction restrictions go into effect immediately through May 31, 2020.
Tenants are still obligated to pay rent, and landlords can still recover rent that is due.
Check it here to deep dive in details: https://one.rent/aae5f
REIA News May 2015 - Budget Issue
The May issue of REIA News has just be released.
In this issue:
• Detailed Budget Analysis for the Real Estate Sector
• Are falling home ownership levels reversible?
• In the company of strangers
• What the new foreign investment rules mean for you
• Time for action on housing affordability
Best Regards
Linda & Carlos Debello
“Your Local Sales & Property Management Specialist”
LJ Gilland Real Estate Pty Ltd (http://www.ljgrealestate.com.au)
PO BOX 19
ZILLMERE 4034
(07) 3263 6085
0400 833 800 (Mob 1)
0413 560 808 (Mob 2)
0409 995 578 (Linda)
http://www.facebook.com/ljgrealestate & Find Us on Google+
http://www.ljgrealestate.com.au/index.php?lan=ch
Confidential email:- The information in this message is intended for the recipient name on this email. If you are not the recipient please do not read, copy distribute or act upon the message as the information it contains may be privileged. If you have received this message in error, please notify the writer by return email. Thank you very much for your assistance in this matter and your co-operation
The bright line test and other tax considerations in relationship property se...Jay Shaw
This article discusses the general tax principles relating to the settlement of relationship property in New Zealand, including the potential effect of the new ‘bright line’ test for residential property introduced on 1 October 2015.
Puerto Rico: Value Added Tax - Impact to Educational services & Non-profit or...Alex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”) effective April 1, 2016, for state tax purposes. The SUT will continue to be in place for municipal tax purposes after
March3 1, 2016.
This guidance issued by Kevane Grant Thornton LLP specifically relates to educational services and non-profit organizations.
The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 - An...D Murali ☆
The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 - An analysis - K. R. Girish - Article published in Business Advisor, dated April 10, 2015 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Puerto Rico: Value Added Tax - Impact on the Manufacturing IndustryAlex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”)
effective April 1, 2016, for state tax purposes.
The SUT will continue to be in place for municipal tax purposes after March 31, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the manufacturing industry.
Tax Guide to Overseas Real Estate Investments for U.S. InvestorsDurise
Before you even begin to consider a jump into the foreign real estate investment pool, it’s important to become as knowledgeable about the entire process as possible. One item that is particularly important to research and understand is the tax implications that go along with property investing overseas. To that end, we’ve put together this tax guide to help U.S. real estate investors gather some much needed tax information.
Dodd frank act impact on seller financing for investorsRichard Roop
In this month’s Ultimate Training Webinar we will be covering “Dodd Frank Acts Impact on Seller Financing for Investors” and when you attend you will learn:
•How the Safe Act and Dodd-Frank will affect seller financing going forward
•Who is the Consumer Financial Protection Bureau (CFPB) and what is the Dodd-Frank Act?
•How to safely grow your business in spite of the new Dodd-Frank Act
•How to properly use the ultimate strategy and be in compliance with the Dodd-Frank Act
•What is the difference between the SAFE Act and the Dodd-Frank Act
•How to Thrive as a Real Estate Investor Under the SAFE Act!
•What you MUST know to use seller carry-back from here on out!
Puerto Rico: How the proposed Value Added Tax will impact the Renewable (Gree...Alex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”)
effective April 1, 2016, for state tax purposes.
The SUT will continue to be in place for municipal tax purposes after April 1, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the renewable green energy industry.
Puerto Rico: Value Added Tax - Impact on the Restaurant IndustryAlex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”)
effective April 1, 2016, for state tax purposes.
The SUT will continue to be in place for municipal tax purposes after April 1, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the restaurant industry.
How the Coronavirus Eviction Ban Impacts LandlordsChuck Hattemer
Governor Gavin Newsom issued an executive order that authorizes local governments to pause evictions for renters.
The eviction restrictions go into effect immediately through May 31, 2020.
Tenants are still obligated to pay rent, and landlords can still recover rent that is due.
Check it here to deep dive in details: https://one.rent/aae5f
REIA News May 2015 - Budget Issue
The May issue of REIA News has just be released.
In this issue:
• Detailed Budget Analysis for the Real Estate Sector
• Are falling home ownership levels reversible?
• In the company of strangers
• What the new foreign investment rules mean for you
• Time for action on housing affordability
Best Regards
Linda & Carlos Debello
“Your Local Sales & Property Management Specialist”
LJ Gilland Real Estate Pty Ltd (http://www.ljgrealestate.com.au)
PO BOX 19
ZILLMERE 4034
(07) 3263 6085
0400 833 800 (Mob 1)
0413 560 808 (Mob 2)
0409 995 578 (Linda)
http://www.facebook.com/ljgrealestate & Find Us on Google+
http://www.ljgrealestate.com.au/index.php?lan=ch
Confidential email:- The information in this message is intended for the recipient name on this email. If you are not the recipient please do not read, copy distribute or act upon the message as the information it contains may be privileged. If you have received this message in error, please notify the writer by return email. Thank you very much for your assistance in this matter and your co-operation
The bright line test and other tax considerations in relationship property se...Jay Shaw
This article discusses the general tax principles relating to the settlement of relationship property in New Zealand, including the potential effect of the new ‘bright line’ test for residential property introduced on 1 October 2015.
Puerto Rico: Value Added Tax - Impact to Educational services & Non-profit or...Alex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”) effective April 1, 2016, for state tax purposes. The SUT will continue to be in place for municipal tax purposes after
March3 1, 2016.
This guidance issued by Kevane Grant Thornton LLP specifically relates to educational services and non-profit organizations.
Similar to What You Need To Know About FIRPTA, the Foreign Investment in Real Property Tax Act (20)
The KA Housing - Catalogue - Listing TurkeyListing Turkey
Welcome to KA Housing, a distinguished real estate development nestled in the heart of Eyüpsultan, one of Istanbul’s most promising districts.
Just 10 minutes from the bustling city center, Eyüpsultan offers a serene escape with the convenience of urban living. The direct metro line ensures seamless connectivity to all parts of Istanbul, making it an ideal location for residents who seek both tranquility and vibrancy.
KA Housing boasts unparalleled accessibility, with proximity to Istanbul Airport only 30 minutes away, facilitating easy international travel. Effortless city access is guaranteed by direct metro and transportation links to Istanbul’s cultural and commercial hubs. Quick access to key metro lines connects you to every corner of the city within minutes, making commuting and exploring the city hassle-free.
The development offers luxurious living spaces with a range of unit layouts from 1+1 to 4+1, designed with meticulous attention to detail. Each unit features balconies or terraces, providing stunning vistas of Istanbul and enhancing the living experience. High-quality materials and superior craftsmanship ensure durability and elegance, while sound-proof insulation and high ceilings (2.95 m) offer comfort and sophistication.
Residents of KA Housing enjoy exclusive on-site amenities, including a state-of-the-art gym, outdoor swimming pool, yoga area, and walking paths. Entertainment options abound with a private cinema, children’s playground, and a variety of dining options including a café and restaurant. Security and convenience are paramount with 24/7 security, a dedicated carpark garage, and an IP intercom system.
KA Housing represents a prime investment opportunity with limited availability in a high-demand area, ensuring enduring value and potential for lucrative returns. Homes in this development provide exceptional value without compromising on quality, offering affordable luxury for discerning buyers. The construction is of the highest quality, built to the latest seismic and disaster resistance standards, ensuring safety and resilience.
The community and surroundings of KA Housing are enriched by close proximity to prestigious universities such as Haliç University, Bilgi University, and Istanbul Ticaret University, making it an ideal location for students and academics. The development is adjacent to the Alibeyköy stream leading into the Halic waters, offering serene natural escapes amidst lush greenery. Residents can enjoy the cultural richness of the area, surrounded by historical and cultural landmarks that blend leisure, nature, and culture seamlessly.
https://listingturkey.com/property/the-ka-housing/
Need MCA leads? No sweat! MCAs are great for small biz funding. Learn how to snag top-notch leads: businesses needing cash, with repayment ability, decision-makers, and accurate contacts. Use content, social ads, lead platforms, partnerships, and capture processes for quality leads.
https://www.leadgeneration.media/blog/b/streamline-your-mca-sales-process-with-pre-qualified-leads
Omaxe Sports City Dwarka stands out as a premier residential and recreational destination, offering a blend of luxury and sports-centric living. Located in the thriving area of Dwarka, this project by Omaxe Limited is designed to cater to modern lifestyle needs while promoting a healthy, active living environment.
Sense Levent Kagithane Catalog - Listing TurkeyListing Turkey
Sense Levent offers a luxurious living experience in the heart of Istanbul’s vibrant Levent district.
This cutting-edge development seamlessly integrates modern design with natural elements, featuring live evergreen plants maintained by an advanced irrigation system, ensuring lush greenery year-round.
The building’s elegant ceramic balconies are both stylish and durable, enhancing the overall aesthetic and functionality. Residents can enjoy the 700m Sky Lounge, which provides breathtaking views of Istanbul and a perfect space to relax and unwind.
Sense Levent promotes a healthy and active lifestyle with a full gym, swimming pool, sauna, and steam room, all available in the building. The interiors are crafted with high-quality materials, ensuring a luxurious and inviting living space.
Designed with young professionals in mind, Sense Levent features 1+1 and 2+1 units with smart floor plans and balconies. The project promises high investment returns, with an expected annual return of 6.5-7%, significantly above Istanbul’s average ROI.
Located in the rapidly growing and highly desirable Levent area, the development benefits from ongoing urban regeneration projects. Its prime location offers proximity to shopping malls, municipal buildings, universities, and public transportation, adding immense value to your investment.
Early investors can take advantage of discounted units during the construction phase, with an expected capital appreciation of +45% USD upon completion. Property Turkey provides comprehensive rental management services, ensuring a seamless and profitable investment experience.
Additionally, robust legal support and significant tax advantages are available through Property Turkey’s licensed Real Estate Investment Fund. Levent is a dynamic urban hub, ideal for young professionals with its numerous corporate headquarters and shopping malls.
Sense Levent is more than just a residence; it’s a place where dreams and opportunities come to life. Contact us today to secure your place in this exclusive development and experience the best of Istanbul living. Sense Levent: Sense the Opportunity. Live the Dream.
https://listingturkey.com/property/sense-levent/
BricknBolt Understanding Load-Bearing Walls and Their Structural Support in H...BrickAndBolt
Load-bearing walls are the backbone of any home construction, providing crucial structural support that carries the weight of the house above. For companies like Brick and Bolt Mysore and Bricknbolt Faridabad, understanding and properly implementing these elements are key to constructing safe and durable buildings.
Referans Bahcesehir which is being constructed, in the center of the most regional destination as Bahçeşehir, shines out with its central location and unique landscape including social facilities such as a fitness center, sauna, sports facilities, children’s playground and recreational areas.
Not only drawing attention for immediate surroundings including commercial centers and private schools but also providing the easily accessible location with closeness to Tem Highway and connection roads, ongoing construction of 3rd Bridge Connection roads and Metro Projects
Bahcesehir is a rising value in the great city of Istanbul… Located at a new transportation junction in the northwest of the City… Located at such a spot that the access roads for the 3rd bridge and for the 3rd Airport will reach the region in 2016. The Marmaray and the Subway will extend all the way to Referans Bahcesehir respectively in 2018 and 2019.
465 flats and 34 stores are designed with an outstanding approach and arranged with a unique perspective offering the following options: 1 plus 1, 2 plus 1, 3 plus 1, 3.5 plus 1, 4 plus 1, and 4.5 plus 1. It is planned so as to safeguard you and your loved ones based upon a modern, technological safety approach. As you experience the joy and luxury here, you will be content and feet at ease.
It is worth seeing both inside and outside with heart-warming cafes, tasty restaurants and elegant stores… And it is ready to offer a vivacious social life with a warm and cozy space design.
A folding swimming pool and indoor swimming pools, playgrounds, Turkish bath, sauna… It has them all. Everything you need for your well-being and for having a pleasant time will be at your service. You simply need to align the rhythm of life with the rhythm of Referans Bahcesehir.
https://listingturkey.com/property/referans-bahcesehir/
Urbanrise Paradise on Earth - Unveiling Unprecedented Luxury in Exquisite Vil...JagadishKR1
Immerse yourself in the epitome of luxury living at Urbanrise Paradise on Earth. These opulent 4 BHK villas, nestled off the prestigious Kanakapura Road in Bangalore, redefine elegance and sophistication. With meticulous craftsmanship, breathtaking design, and unparalleled amenities, Urbanrise Paradise on Earth offers a sanctuary where every moment is infused with luxury and serenity. Experience a life of grandeur and indulgence at this exclusive residential enclave.
Elegant Evergreen Homes - Luxury Apartments Redefining Comfort in Yelahanka, ...JagadishKR1
Experience unmatched luxury at Elegant Evergreen Homes, offering exquisite 2, 3, and 4 BHK apartments in the serene locality of Yelahanka, Bangalore. These meticulously crafted homes blend modern design with timeless elegance, providing a harmonious living environment. Enjoy top-tier amenities and a prime location, making Elegant Evergreen Homes the ideal choice for discerning homeowners.
Flat available for sale
Location- Tupudana, Ranchi
Savitri enclave
Area- 3BHK
Rate- 4000/sq.ft.
Super Build Up Area-1629 sq.ft.
Build-up area-1253 sq.ft.
Rate- 65lakh16k(approx)
Floor available- Flat available in all floor(G+12)
Balcony- 2
Washroom- 2
Parking - CAR PARKING
Amenities- Joggers track,temple, children's park,gym,banquet hall (5 Lakh)
Possession year (Handover year)- Dec 2025
Outside View from the apartment and flat balcony is very beautiful.
For more information contact AASHIYANA STAR PROPERTIES
7766900371
Green Homes, Islamabad Presentation .pdfticktoktips
Green Homes Islamabad offers beautifully designed 5, 8, and 10 Marla homes near the airport and motorway. Enjoy luxury, convenience, and high rental returns in a prime location.
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
Brigade Insignia offers meticulously designed apartments with modern architecture and premium finishes. The project features spacious 3,3.5,4 and 5 BHK units, each thoughtfully planned to provide maximum comfort, natural light, and ventilation.
https://www.newprojectbangalore.com/brigade-insignia-yelahanka-bangalore.html
Simpolo Tiles & Bathware
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Since the first steps were taken in 1977, Simpolo Ceramics has carved its niche as a consistently growing organisation with unparalleled innovation and passion rooted in simplicity.
We endure gratification for every experience we offer, created to share something meaningful. It may not resonate with the majority, but that makes us a class apart. If only a handful were to understand the purpose of our existence, we would be proud to have found our believers. Rather, people with whom we can share our beliefs.
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Design your space in your style with our very own Visualizer. Now, you can choose the tiles of your liking from our wide selection and see how they would look in a space. Select the tile from the multiple options and the visualiser will replace the surfaces in the image with the selected tiles. This way, instead of just your imagination, you can choose the tiles for your place by getting an actual picture of how they would look in a space. So, design your space the way you desire digitally and implement it in real life to get the best results!
You can also share this visualiser with others to help them design their space.
Committed to delighting customers with world-class ceramic products and services. Make Simpolo synonymous with the best quality and set new benchmarks of excellence for all stakeholders. Pursue best business practices with utmost integrity to make Simpolo an exciting organisation to work with, for vendors, channel partners, investors and employees alike.
Gain worldwide recognition in the field of ceramic building products through Research and Innovation and bring an enhanced lifestyle within reach for every household.
One FNG by Group 108 Sector 142 Noida Construction UpdateOne FNG
One FNG by Group 108 is launching a new commercial project in Sector 142 Noida. Office space and high street retail shops on the FNG and Noida Expressway. For more information visit the website https://www.onefng.com/
500 acres of brilliance await you here at Riverview City which offers modern living, effortless convenience, and a beautiful natural setting. It is a mega township by Magarpatta City in Loni Kalbhor, Pune. Enjoy easy access to work, schools, and fun while experiencing a perfect work-life balance.
Visit - magarpattacity.developerprojects.in
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Scanning tenants in NYC requires a thorough and compliant approach to ensure you find reliable renters. For a positive rental experience, consider hiring a property management service. Belgium Management LLC specializes in NYC rental property management and tenant relationship management. We prioritize tenant satisfaction, making us a trusted name in New York property management. Our dedicated team ensures tenants feel valued and supported throughout their lease.
What You Need To Know About FIRPTA, the Foreign Investment in Real Property Tax Act
1. NAR Issue Brief
FIRPTA Withholding Rate Increasing to 15%
January 14, 2016
The recently-enacted Protecting American Taxpayers from Tax Hikes (PATH) Act
(H.R. 2029, P.L. 114-113) includes two very positive FIRPTA provisions that are
conservatively estimated to boost foreign investment in U.S. commercial real estate by $20-
$30 billion per year. However, as part of a package of tax changes to “pay for” the two
provisions, Congress also included an increase in the FIRPTA withholding rate from 10% to
15%. It should be noted that residences purchased from foreign persons will not be affected
by the higher withholding rate unless the purchase price exceeds $1 million.
What is FIRPTA?
FIRPTA is the Foreign Investment in Real Property Tax Act of 1980. This legislation was
enacted as a result of widespread concerns that foreign investors were purchasing U.S. real
estate and then selling it at a profit without paying any tax to the United States. To solve the
problem, FIRPTA established a general requirement on the purchaser of real estate interests
owned by a foreign seller to withhold 10% of the purchase price and remit it to the Internal
Revenue Service at the time of closing unless certain exceptions are met.
Usually, the settlement agent is the party that withholds and remits the funds to the IRS, but
the buyer is legally responsible. In certain circumstances, the buyer’s agent can also be held
liable (see last question, below).
Under the FIRPTA law, in the case of a sale of a residence that is intended for personal use
by the buyer, there is no withholding requirement if the sales prices does not exceed
$300,000.1
How Does the New Law Specifically Change the Withholding Requirement?
The provision increases the rate of withholding from 10% to 15% except in the case of
sales of residences intended for personal use by the acquirer, if the purchase price does not
exceed $1 million.
Thus, if the previous exception for personal residences (where the purchase price does not
exceed $300,000 – in which case no withholding is required) does not apply, the 10%
withholding rate is retained so long as the purchase price does not exceed $1 million. If the
price is higher than $1 million, the new 15% rate will apply.
1 For purposes of the exception from withholding for personal use residences, the buyer or a member of the
buyer’s family must have definite plans to reside at the property for at least 50 percent of the number of days
the property is used by any person during each of the first two 12-month periods following the date of the
transfer. Days the property is vacant do not count as days of use.
2. NAR Issue Brief
FIRPTA Withholding Rate Increasing to 15%
January 14, 2016
In summary, here are some guidelines:
If the amount realized (generally the sales price) is $300,000 or less, AND the
property will be used by the buyer as a residence, no sums need be withheld or
remitted.
If the amount realized exceeds $300,000 but does not exceed $1,000,000, AND the
property will be used by the buyer as a residence, then the withholding rate is 10%
on the full amount realized.
If the amount realized exceeds $1,000,000, then the withholding rate is 15% on the
entire amount, regardless of use by the buyer.
When Does the New 15% Withholding Rate Become Effective?
The PATH Act makes this change effective for dispositions after the date which is 60 days
after the date of enactment. The legislation was signed into law by President Obama on
December 18, 2015. The 60th
day after this day is February 16, 2016. Thus, the new rate
will apply to sales on or after February 17, 2016.
What Beneficial Changes for FIRPTA Were Included in the PATH Act?
The new law makes two changes to the FIRPTA law, both of which are expected to make
U.S. commercial property more attractive to foreign investors without substantially eroding
the original purpose of the Act.
First, the law doubles the maximum amount of stock ownership that a foreign investor may
have in a U.S. publicly-traded real estate investment trust (REIT) from the previous limit of
5% to 10%.
Second, the new law permits certain foreign pension funds to invest in real estate investment
trusts (REITs) without having FIRPTA treatment apply.
Did the NAR support these changes?
Yes. NAR was part of a broad coalition of commercial real estate groups that advocated for
the beneficial changes made in the PATH Act.
Do I have any obligations for FIRPTA withholding as a real estate agent or broker?
You very well might. If you represent either the buyer or a seller of real property that is
subject to FIRPTA withholding, you could find yourself liable for the tax that should have
been withheld by the buyer in certain circumstances.
3. NAR Issue Brief
FIRPTA Withholding Rate Increasing to 15%
January 14, 2016
If the buyer of the real property receives a certificate from the seller that the
seller is not a foreign person, and is therefore exempt from withholding, and you
as the agent for either the seller or the buyer have knowledge that the certificate
is false, you must notify the buyer of this fact. Failure to do so could mean that
you, as the agent, are liable for the tax that should have been withheld but was
not.
o However, the agent’s potential liability in this case is limited to the
amount of commission he or she earns from the transaction.
In addition, if you as an agent serve as a “withholding agent,” you may be
personally liable for the full amount of FIRPTA withholding tax required to be
withheld, plus interest and penalties.
o A “withholding agent” is any person having the control, receipt, custody,
disposal, or payment of income that is subject to withholding. Generally,
this is the person who pays an amount to the foreign person that is
subject to withholding.
For more information, please contact:
Evan M. Liddiard, CPA (Senior Policy Representative – Federal Taxation), NAR
Government Affairs: eliddiard@realtors.org 202-383-1083.
Finley Maxson (Senior Counsel), NAR Legal Department: fmaxson@realtors.org
312-329-8381.