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REALTOR Association of Greater Fort Lauderdale FIRPTA ADDENDUM This Addendum to the Deposit Receipt and Contract for Sale and Purchase ( Contract ) is entered into between: (For residential properties.

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Under FIRPTA, a foreign person disposing of a U.S. real property interest must have 15% of the amount realized withheld.

Foreign individual, partnership, trust or estate When a foreign person, partnership, trust or estate disposes of U.S. real property, the withholding will be 15% of the fair market value (sales price). However, the 15% automatic withholding for FIRPTA is not supposed to exceed the actual tax liability.

Can FIRPTA withholding rate be reduced? Sales of property for the use by the buyer as a personal residence are subject to reduced withholding of 10% of the amount realized if the sale is above $300,000 but less than $1 million.

The withholding rate is 10% for properties sold for less than $1 million and that the buyer intends to occupy as a residence, but no withholding is required if the sales price is $300,000 or less. The withholding rate is 15% for a property the buyer does not intend to use as a residence, regardless of the sales price.

A “domestically controlled” REIT is a REIT in which less than 50% of the fair market value of the shares have been held, directly or indirectly, by non-US persons during the five years preceding the date of the disposition or, if shorter, the period during which the REIT has existed.

Per the FIRPTA Addendum and per FIRPTA requirements, the closing agent or qualified substitute, as defined under FIRPTA, would require a sworn certification with Social Security number or Tax Identification Number for each such seller (e.g., Certification of Non-Foreign Status), and that certification would then ...

The FIRPTA rules generally require a transferee to withhold on the amount realized when a transferor who is a nonresident alien or a foreign corporation (foreign person) disposes a U.S. real property interest unless there is an exemption.

FIRPTA is short for "Foreign Investment in Real Property Tax Act" (26 U.S.C. § 1445) the purpose of which is to collect taxes due on sale of real estate owned by foreign individuals or entities which do not pay US taxes.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232