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FIRPTA withholding affects sellers who are foreign person.U.S. domestic C Corporation is NOT a foreign person - and is NOT subject to FIRPTA withholding.
However when C Corporation pays distributions to foreign shareholders - these distributions might be subject to FIRPTA withholding.
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.
the foreign person is:-- Foreign individual not resident in the US for tax purposes (nonresident alien individual).-- Foreign corporation.
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