FIRPTA is an acronym that stand for Foreign Investment in Real Property Tax Act. FIRPTA is not a tax, it is a withholding. A withholding is an amount held back use to pay potential taxes. The IRS implements a withholding on foreign sellers to make sure they pay their fair share of taxes. In other words, the IRS will hold the potential tax owed "hostage" until the seller files a tax return to show what they actually owe.
Selling your home and hear the word FIRPTA? Lets chat! Realty Resource Group has joined forces with FIRPTA Solutions to provide you with the answers and peace of mind you need to make selling your home easy.