FIRPTA Fact of Fiction

Posted on April 8, 2019

1. I am buying US property from a US citizen who lives in Canada. No withholding is required.

TRUE

2. I am a US citizen buying US property from a Canadian. If the withholding obligation is not met, the IRS may charge me a penalty.

TRUE

3. I am a French citizen selling property. I have a valid US social security number from when I lived and worked in the US. The withholding obligation does not apply because I have an SSN.

FALSE

4. In 2008 we bought some property through our Bermuda corporation. We are selling the property at a loss. The withholding obligation does not apply because we are not making a profit.

FALSE

5. I am a Swiss citizen selling a timeshare to my friend. It’s not worth much, so we are going to put a $0 sale price. The withholding obligation does not apply.

TRUE (generally, with some exceptions)

6. I am a Canadian citizen. I have a US ITIN (individual tax identification number). No withholding is required on my sale of property because I have an ITIN.

FALSE

7. I am buying a parcel of land from a BVI corporation. I plan to build a residence and live there forever. The sale price is $200,000. Withholding does not apply.

FALSE

8. I am an Australian citizen temporarily living in the US. When I sell my house, no withholding is required because I am a US resident.

FALSE