Just wanted to let you know that I've read the IRS publication 519 as you suggested and both my husband and I are clearly resident aliens under their "substantial presence test".
I was also reading up about firpta and the IRS states that it is for a house valued at more than $300,000 which mine is not anywhere near.
When I receive the name and number of your contact I'll call to confirm that my worse fears have been put to bed.
I truly appreciate the time you donated in responding to me.
first I should say that realtors like me are not allowed to give legal advice; we are neither licensed nor trained to practice law (or accounting, for that matter). That said, I know from experience that FIRPTA does not apply in every case. It depends on the selling price and if the property will be the buyers' full-time residence. In addition you or your accountant/CPA can possibly file for zero-withholding. Consult with a good CPA/accountant. I can name at least one if you are interested (full disclosure: I have no connection or affiliation with that CPA).
All the best,
Tobias Kaiser, MS, CIPS
Get in touch with my financial advisor I sent you to make sure that all is well, but I think it is.
When you get ready to sell your property, let me know and I'll put you in touch with a great agent to help you do that!
there are always creative ways to purchase without worrying over 10%, but you need to feel comfortable with how this is done. I will have more news soon, hang in there!
I'll have an answer tomorrow, apparently they went off on a cruise where there is no cell phone access!
How rude that they did not invite me along! lol!
It is not a new law, and the Title co. you closed your other condo with should have verified your citizenship status. It is complicated - so hang in there for another day and I'll get you an answer.
I'd still like to know if you have to withhold the 10% if that will break the deal? Is it that important? If so, why? Once I know the answer to that, I may have other advice for you to work it out.
I'll be in touch tomorrow, in the meantime, send me your direct email. for some reason I'm getting your email hours or days after it is posted. Not sure it is a Trulia server issue, or on my end, but send to paulabean@homeOrlando.com.
I will follow up with a post on Trulia to update all as well.
Probably so since you are not a U.S citizen, BUT, I have access to a good friend who is a closing agent and works for an atty. I've put a call in to her to see what her .02 is.
Would it prevent you from selling your condo if they withhold the 10%? The worst that could happen is that you'll get it back when you file taxes, which could be as early as Jan 2009, or when you get your permanent status, whichever comes first.
I'll post again when I hear back from my legal Eagle ;-)
To prevent foreign sellers from avoiding the payment of taxes due on the sale of real property, the IRS requires that 10 percent of the gross sale price (including cash paid and any debt assumed by the buyer) is held from the seller.
There are a few exceptions to this rule, you should consult the IRS and/or and accoutant about it because tax laws are constantly changing.