Buying from an international seller?

[walt34]

But you only owe 15% of $20k, that’s it! That’s a lot for anyone.

What scenario are you picking if price per point is comparable, #1 or #2?

If the price is the same, I'd obviously go with the contract that is less hassle. But it wouldn't take much of a price difference for me to choose differently, unless I'm in a hurry - the risk of a few weeks' delay is real. I have to trust the title company with my $20k in any way, so I'd trust them to handle FIRPTA with negligible financial risk for me.

 

[geargrinder]

A lot of discussion around scenario's that are extremely rare and very unlikely to happen. I've been on this board for several years, and have bought from an international seller. I don't recall any buyer ever having to pay the 15%.

I've only seen others, like me, who have gotten correspondence from IRS. Also, like me, the 15% had been withheld correctly. The title company responded to the IRS notices. End of story, no problem for the buyer.

Too much worry about something that probably won't happen. I might get hit by lightning today, but I'm not going to prepare against it.



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[pzw90]

Too much worry about something that probably won't happen. I might get hit by lightning today, but I'm not going to prepare against it.

Negotiate to get the lightning to cover the hospital fees

 

[Girlstar30]

A lot of discussion around scenario's that are extremely rare and very unlikely to happen. I've been on this board for several years, and have bought from an international seller. I don't recall any buyer ever having to pay the 15%.

I've only seen others, like me, who have gotten correspondence from IRS. Also, like me, the 15% had been withheld correctly. The title company responded to the IRS notices. End of story, no problem for the buyer.

Too much worry about something that probably won't happen. I might get hit by lightning today, but I'm not going to prepare against it.



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Hmm I never got correspondence from the irs for buying international, is that typical? As long as I dont have to do anything im not afraid of it i just dont see the point of an added layer of potentially waiting longer or irs contact when there are plenty of other fish in the sea, but if my latest contract was from international I would have gone for it bcuz of the price, just wouldnt be my first choice and esp if its not a deal, but everyone is different

 

[cruisehopeful]

Hmm I never got correspondence from the irs for buying international, is that typical? As long as I dont have to do anything im not afraid of it i just dont see the point of an added layer of potentially waiting longer or irs contact when there are plenty of other fish in the sea, but if my latest contract was from international I would have gone for it bcuz of the price, just wouldnt be my first choice and esp if its not a deal, but everyone is different

I never got anything about my international purchase last year. I was under the impression that it wasn't anything that I'd need to deal with - ever.

 

[Girlstar30]

I never got anything about my international purchase last year. I was under the impression that it wasn't anything that I'd need to deal with - ever.

Same here there wasnt a big emphasis on it at all and if it wasnt for the boards, its another thing I wouldn't even overthink about except for the fact I had to wait longer and that made me crazy

 

[IsDVCForMe?]

I’m a little confused as to people saying they didn’t have to do anything. I have to call a FIRPTA specialist to give my SSN. Surprised only one other person has mentioned that.

 

[JackosinDIS]

As an international buyer / seller, who has also bought from other non-U.S sellers, nothing about it worries me, apart from maybe the additional fees I have to pay to have withholding certificates prepared.

There is so little risk that a buyer would ever have to pay the 15% withholding tax. As stated above, this is paid by the title company to the IRS, or held until the withholding certificate is obtained by the Seller.

The only additional step that a buyer needs to take on international sales is to provide their SSN (or ITIN if it is international on both buyer and seller sides). And then, only if the seller intends to apply for a withholding certificate. If the seller is content to just pay the 15% tax (by way of deduction from the sale price) then nothing further needs to be done.

Yes, there may be additional time while paper work is notarised, but my experience is that this can us be done online with US notaries so it didn’t delay anything. May be different with some countries though.

 

[VGCgroupie]

Hmm I never got correspondence from the irs for buying international, is that typical? As long as I dont have to do anything im not afraid of it i just dont see the point of an added layer of potentially waiting longer or irs contact when there are plenty of other fish in the sea, but if my latest contract was from international I would have gone for it bcuz of the price, just wouldnt be my first choice and esp if its not a deal, but everyone is different

You only get something if they think the tax hasn't been paid.

 

[IsDVCForMe?]

I’m a little confused as to people saying they didn’t have to do anything. I have to call a FIRPTA specialist to give my SSN. Surprised only one other person has mentioned that.

Seems this is the process for a withholding certificate.

 

[VGCgroupie]

Seems this is the process for a withholding certificate.

Yep. I refused. They accepted just the last 4 from me, if they wouldnt have I would have not proceeded with the purchase. Lots of downplaying of buying from an international seller not being different and not in a good way.

 

[Girlstar30]

I’m a little confused as to people saying they didn’t have to do anything. I have to call a FIRPTA specialist to give my SSN. Surprised only one other person has mentioned that.

I didnt talk to a specialist and as I stated previously my ssn was NOT protected so that alone is my other reason for sure!

 

[IsDVCForMe?]

I didnt talk to a specialist and as I stated previously my ssn was NOT protected so that alone is my other reason for sure!

I apologize, probably did see that and forgot. Ya, like how is my SSN being used? Will it be visible on this withholding certificate that the seller will also get a copy of? Not questions for you but questions in general.

 

[Girlstar30]

I apologize, probably did see that and forgot. Ya, like how is my SSN being used? Will it be visible on this withholding certificate that the seller will also get a copy of? Not questions for you but questions in general.

In case you didnt see my post, the title company EMAILED me a copy at the end and it had my full social in the email! I have no idea if the seller got a copy but after that I wouldnt be surprised! You should do what vgc did and just give them the last four cuz that was really upsetting to me!

 

[Cfabar1]

In case you didnt see my post, the title company EMAILED me a copy at the end and it had my full social in the email! I have no idea if the seller got a copy but after that I wouldnt be surprised! You should do what vgc did and just give them the last four cuz that was really upsetting to me!

yikes, yeah that's not something that would appeal to me...

And sure, if there is a rare contract you really want (say, a VB Subsidized or an oddly specific number of points say 39 Bay Lake Tower Points that must be in an April Use Year), you're just grateful to find it..

If on the other hand we are talking about a buyer looking for 200-250 points at AKV or SSR, I'd suggest the fear and inconvenience premium of an international seller, just simply isn't worth it without a big financial upside to the buyer...

 

[Disdreaming479]

I closed with an international seller and received a letter from the irs about the firpta tax six months later. I notified Cammy at DVC closings. She replied they also received communication from the firpta agent and the check was sent via fed ex. No further action was needed from me. It was $2880.

 

[IsDVCForMe?]

yikes, yeah that's not something that would appeal to me...

And sure, if there is a rare contract you really want (say, a VB Subsidized or an oddly specific number of points say 39 Bay Lake Tower Points that must be in an April Use Year), you're just grateful to find it..

If on the other hand we are talking about a buyer looking for 200-250 points at AKV or SSR, I'd suggest the fear and inconvenience premium of an international seller, just simply isn't worth it without a big financial upside to the buyer...

Moving forward, it would have to be a unicorn deal. Being a newbie, I went in just offering what I thought would be good enough if that makes sense.

 

[IsDVCForMe?]

I closed with an international seller and received a letter from the irs about the firpta tax six months later. I notified Cammy at DVC closings. She replied they also received communication from the firpta agent and the check was sent via fed ex. No further action was needed from me. It was $2880.

Did you have to give your SSN?

 

[Disdreaming479]

Did you have to give your SSN?

I don’t remember but if I did, it would have been in my purchase paperwork. I did not have any correspondence with a firpta agent.

 

[Girlstar30]

yikes, yeah that's not something that would appeal to me...

And sure, if there is a rare contract you really want (say, a VB Subsidized or an oddly specific number of points say 39 Bay Lake Tower Points that must be in an April Use Year), you're just grateful to find it..

If on the other hand we are talking about a buyer looking for 200-250 points at AKV or SSR, I'd suggest the fear and inconvenience premium of an international seller, just simply isn't worth it without a big financial upside to the buyer...

Agreed and a better title company