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  • Irs 8288-a 2023

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23) Statement of Withholding on Certain Dispositions by Foreign Persons 4 Federal income tax withheld Copy A / Form 2 Gain recognized by foreign corporation $ WITHHOLDING AGENT S U.S. TIN U.S. TIN of FOREIGN PERSON subject 3 Amount realized to withholding (see instructions) $ $ 5 Withholding under section: FOREIGN PERSON S name subject to withholding Foreign address (number, street, and apt. or suite no.) 6 FOREIGN PERSON subject to withholding: a 1445 a Individual b 1446(f)(.

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FIRPTA is a tax law that imposes U.S. income tax on foreign persons selling U.S. real estate. Under FIRPTA, if you buy U.S. real estate from a foreign person, you may be required to withhold 10% of the amount realized from the sale. The amount realized is normally the purchase price.

FIRPTA: US real property interest. ... US real property interest is an interest, other than as a creditor, in real property located in the United States or the US Virgin Islands (or any interest, other than as a creditor, in a US real property holding corporation) by a foreign person (the transferor).

A foreign or domestic corporation is a U.S. real property holding corporation (USRPHC) if the fair market value (FMV) of its U.S. real property interest (USRPI) is at least 50 percent of the sum of the FMV of (1) its total USRPIs, (2) its total interest in real property located outside the United States (FRPI) and (3) ...

specified period (generally 5 years preceding disposition). USRPI. A corporation is a USRPHC if: Fair market value (FMV) of its USRPI. (FMV of its USRPI + interests in real property located outside the United States + all other assets that are used or held for use in its trade or business) = >50%

The term U.S. Real Property interest means an interest in real property (including an interest in a mine, well, or other natural deposit) located in the United States or the U.S. Virgin Islands, as well as certain personal property that is associated with the use of real property (such as farming machinery).

To ensure tax collection from foreign taxpayers, FIRPTA requires U.S. real property interest buyers to withhold 15% of the sales price. The seller may apply to the Internal Revenue Service (IRS) to reduce this 15% to the amount of tax estimated to be due.

FIRPTA authorized the United States to tax foreign persons on dispositions of U.S. real property interests. A disposition means disposition for any purpose of the Internal Revenue Code.

FIRPTA Affidavit (Certificate of Non Foreign Status) Page 1. CERTIFICATE OF NON FOREIGN STATUS. Section 1445 of the Internal Revenue Code provides that a transferee (buyer) of a U.S. real property interest must withhold tax if the transferor (seller) is a foreign person.

The disposition of a U.S. real property interest by a foreign person (the transferor) is subject to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) income tax withholding. FIRPTA authorized the United States to tax foreign persons on dispositions of U.S. real property interests.

The FIRPTA affidavit states that, under the section 1445 of the IRS, if the seller is a foreign person, a buyer of a U.S real estate must withhold tax.

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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
Content Takedown Policy
Bug Bounty Program
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
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:
+1 833 426 79 33
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