Question Details

Roger, Home Seller in Naples, FL

non citizen selling home to U.S. citizen. Does seller pay 10% tax or is there a way not to have to pay so much?

Asked by Roger, Naples, FL Sat Dec 11, 2010

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Not sure about Florida, but in Texas the form Elizabeth mentioned is for the title company's protection only. It only informs the buyer of the IRS code so the title company isn't held liable down the line for failure to notify the buyer of same.
0 votes Thank Flag Link Sun Dec 12, 2010
Also, there is a form that the Buyer has to sign that acknowledges they are aware of this.

The foreign seller can get part of that 10% back but they have to file a tax return to do so, which is what the IRS wants the foreign sellers in the first place.
0 votes Thank Flag Link Sat Dec 11, 2010
You're referring to the IRS FIRPTA regulation, and no, the IRS doesn't negotiate on this. However, the onus is on the buyer, not the title company, to withhold 10% of the sales proceeds and the buyer has the liability if they fail or refuse to inform the title company to withhold the same.
Web Reference:
0 votes Thank Flag Link Sat Dec 11, 2010
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