FIRPTA

Specialist support with FIRPTA withholding on real estate transactions.

Introducing FIRPTA Plus

We are your one-stop resource for all your FIRPTA filing needs. Whether you are a foreign investor or a U.S. withholding agent, our team at HBI Tax is dedicated to providing you with the best support and expertise to ensure your FIRPTA compliance.

WHAT IS FIRPTA

The tax withholding on home sales by foreign sellers is commonly known as “FIRPTA withholding,” in accordance with the 1980 Foreign Investment in Real Property Tax Act. Under this act, the Closing Agent will withhold 15 percent of the gross sale proceeds at closing. This amount serves as a preliminary payment towards any potential taxes that may arise from the sale of the property. The actual tax due will be determined upon filing a U.S. income tax return for the year in which the property was sold. If the actual tax is higher than the amount withheld, additional tax will be owed upon filing the return. If the actual tax is lower than the amount withheld the IRS will issue a refund for the difference.

DO YOU NEED TO WORRY ABOUT FIRPTA

If you are a foreign person selling a U.S. property or purchasing a U.S. property from a foreign person, the Foreign Investment in Real Property Tax Act (FIRPTA) may apply to you. For many foreign sellers, FIRPTA services is the most complicated aspect of owning a U.S. real estate interest. This is because a significant amount of money must be withheld at closing and there may be confusion about what happens to that money after closing.

Even though FIRPTA is typically linked to the sale of U.S. property by a foreign individual, it is the buyer who carries the legal responsibility to handle FIRPTA correctly. Therefore, whether you are a buyer or seller of U.S. real estate, it is essential to comprehend your duties and tasks.

Why Choose Us

Each FIRPTA case is unique and should be approached with the consideration of various factors such as IRS processing, timing of property sale, availability of ITINs, and urgency of receiving proceeds.

With over 20 years of experience, HBI now offers specialized FIRPTA services through FIRPTA Plus, with offices located in Kissimmee and Sarasota. We guide foreign buyers and sellers of U.S. real estate through the complexities of FIRPTA services, providing expert advice on IRS processing timelines and assistance with ITIN applications.

Our team of FIRPTA specialists has established close relationships with the IRS, allowing us to efficiently resolve any FIRPTA-related issues. From your first property purchase to your first U.S. income tax return filing, FIRPTA Plus powered by HBI has you covered.

Convenient Locations

Our specialized offices are dedicated to helping you navigate the FIRPTA process with ease and confidence. With our easily accessible locations in Kissimmee and Sarasota, we offer in-person assistance to those in the area, making the process even more convenient.

Visit one of our conveniently located offices in Auburndale, Kissimmee, Lake Wales, Lakeland, Longwood, and Sarasota.