What is FIRPTA and When Does It Apply?
Posted by Angie Perez on
The world of real estate is filled with acronyms and jargon, and one term that often comes up in international transactions is FIRPTA. The Foreign Investment in Real Property Tax Act (FIRPTA) can have significant implications for both buyers and sellers in real estate transactions. This blog post aims to demystify FIRPTA and explain its role in real estate.
What is FIRPTA? FIRPTA, enacted in 1980, is a United States tax law that imposes income tax on foreign persons disposing of U.S. real property interests. A U.S. real property interest includes sales of interests in parcels of real property as well as sales of shares in certain U.S. corporations that are considered to have U.S. real property interests.
How Does FIRPTA Affect Sellers? If you're a…
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