Home Selling in USA>Question Details

Marita Topmi…, Real Estate Pro in Indianapolis, IN

My client, a European Corporation wants to sell one of their residential properties to a European. He has been told a US agency will keep 30% of the

Asked by Marita Topmiller, Indianapolis, IN Thu Apr 8, 2010

profit from the sale in escrow for up to a year after the sale. Is there a better way?

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IRS rules. Unless it's changed recently, it should only be 10% of the proceeds. Not sure if its a one year period though.
Web Reference: http://www.phgbrokers.com
1 vote Thank Flag Link Thu Apr 8, 2010
The IRS actually puts the burden of this withholding on the buyer, not the seller. However, in Texas, the seller (or person authorized to act on behalf of seller) must sign an affidavit stating the seller is not a foreign person as IRS defines it. This falls under the Foreign Investment in Real Property Tax Act (FIRPTA). Haven't dealt with this in a while, but you can Google it and get all the info you will want to know about it.

Best of luck.
Web Reference: http://www.phgbrokers.com
0 votes Thank Flag Link Thu Apr 8, 2010
Thanks, Guy.

Any other ideas? Any details would be appreciated.
0 votes Thank Flag Link Thu Apr 8, 2010
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