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AFFIDAVIT OF NON-FOREIGN STATUS. Section 1445 of the Internal Revenue Code provides that a buyer of a United States real property interest must withhold tax if the seller is a foreign person.
U.S. Real Property Holding Corporation (USRPHC) In general, a corporation is a U.S. real property holding corporation if the fair market value of the U.S. real property interests held by the corporation on any applicable determination date equals or exceeds 50 percent of the sum of the fair market values of its -
In accordance with Michigan State Law, a Property Transfer Affidavit must be filed with the local assessor's office whenever real estate or some types of personal property transfer ownership (a transfer of ownership is generally defined as: a conveyance of title to, or present interest in, a property, including
For U.S. property dispositions subject to FIRPTA, the transferee (purchaser) is required to withhold and remit to the IRS 15% of the gross sales price to ensure that any taxable gain realized by the seller is actually paid.
In general, IRC § 1445 requires the purchaser of a USRPI from a foreign person to withhold 10 percent (or more) of the amount realized on the disposition.