We pride ourselves on helping out International DVC Sellers. It is important to understand FIRPTA. The Foreign Investment in Real Property Tax Act (“FIRPTA”) is the U.S. tax law that requires 15% of a non-U.S. seller’s gross sales proceeds to be sent directly by the closing agent to the U.S. Internal Revenue Service (“IRS”). This law was enacted to ensure that the appropriate tax will be paid by non-U.S. sellers on their sale of U.S. real estate by requiring that a significant portion of the gross sales proceeds (generally well in excess of the tax, if any, that will ultimately be due) be sent directly to the IRS and requiring the non-U.S. seller to subsequently seek a refund of the amount paid.

 

There is a process available to a non-U.S. seller to reduce or totally eliminate the amount to be remitted to the IRS at closing by filing specific forms with the IRS prior to the sale that contains a calculation of the actual amount of the gain if any, that the non-U.S. seller will have on the sale and the applicable tax on that gain. If the forms show that there will be no gain on the sale, the IRS may issue a withholding certificate that allows the closing agent to disburse the withheld amount to the seller. Buy and Sell DVC, Inc.® recommends that these forms be prepared and filed by a qualified FIRPTA compliance company. In order to file the documents to avoid the 15% withholding, a non-U.S. seller must have a U.S. Social Security Number or U.S. Individual Taxpayer Identification Number (“ITIN”). If the seller has neither of these, an application to obtain an ITIN must also be filed along with the other FIRPTA paperwork. Because the entire FIRPTA process can take some time to complete (especially if the seller does not have a U.S. Social Security Number or U.S. Individual Taxpayer Identification Number) and must be completed before the closing, it is preferable to initiate the contact with the FIRPTA compliance company as early as possible so that the closing process may proceed smoothly.

 

Buy and Sell DVC, Inc. recommends the FIRPTA specialists below:

 

Wade F. Johnson, Jr. 

U.S. FIRPTA, LLC

4255 Tidewater Dr.

Orlando, FL 32812-7949

Certified Acceptance Agent

Phone: 407-859-2388

Fax: 407-429-3825

Fee is typically: $500

 

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Nancy Carpenter, AFSP
Foreign Investors Tax Services LLC
FIRPTA Specialist
ITIN Certified Acceptance Agent (CAA)

Notary Public

Tax Returns for Foreign Investors/ Rental Properties & Tax Withholding

P.O. Box 722
Intercession City, Florida 33848

Phone: 407-301-0638

Fax: 407-308-0648
Email – nancy@fitaxes.com 
Web address: fitaxes.com
Skype user name – nancyfits

Fee is typically: $500