How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29932
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

Is FIRPTA withholding required when the Seller is a U.S.

Customer Question

Is FIRPTA withholding required when the Seller is a U.S. domestic C Corporation with a federal Tax ID number?
NOTE: The shareholders are non-U.S. citizens
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

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.

Expert:  Lev replied 1 year ago.

See here

https://www.irs.gov/individuals/international-taxpayers/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.

.

.I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.

If you still have any doubts, need clarification - please be sure to ask.

I am here to help you with all tax related issues.

Expert:  Lev replied 1 year ago.

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.

.

.I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.

If you still have any doubts, need clarification - please be sure to ask.

I am here to help you with all tax related issues.