FIRPTA for Canadians Selling US Real Estate
Foreign Investment in Real Property Tax Act
The Foreign Investment in Real Property Tax Act or FIRPTA, applies to the disposition of U.S. real property by foreign owners. Canadians who sell a U.S. property may be subject to a 15% withholding of the purchase price by the IRS. There are ways to reduce or eliminate this withholding tax even if FIRPTA applies. If a seller can prove that his or her adjusted cost basis will reduce or eliminate his or her capital gain so that it amounts to less than 15% of the sale price, a special application can be made to the IRS asking for a reduction or exemption from FIRPTA. Our team has extensive experience working with Canadians and navigating their FIRPTA obligations.
We are the #1 expert team helping Canadians manage FIRPTA in the USA!