FIRPTA filing

[Nicnicnic.nic]

I have a delayed closing on a contract that should be done at the end of this month and I got an email stating that I need to call to provide my tax info (SSN) for FIRPTA filing. It's been a few months since I did all the paperwork and payment and everything for this contract.

Is this normal? I'm just worried it's some type of scam. My other contract didn't do this.

 

[intamin]

I have a delayed closing on a contract that should be done at the end of this month and I got an email stating that I need to call to provide my tax info (SSN) for FIRPTA filing. It's been a few months since I did all the paperwork and payment and everything for this contract.

Is this normal? I'm just worried it's some type of scam. My other contract didn't do this.

Did you buy from an international seller? When I bought from an international seller my broker dealt with it for me.

 

[Nicnicnic.nic]

Did you buy from an international seller? When I bought from an international seller my broker dealt with it for me.

TBH I'm not sure if they are international or not, I'll ask my broker

Thanks!

 

[Nicnicnic.nic]

Did you buy from an international seller? When I bought from an international seller my broker dealt with it for me.

So I just saw on my paperwork...yep canada

 

[intamin]

So I just saw on my paperwork...yep canada

I would still reach out to your broker and see if they think there's anything you need to do for it and send them the email you received to see if this is expected or not. Regardless, you shouldn't have to pay anything. The tax is for the foreign seller to pay on any gains they may have made.

 

[MyDogTink]

Buyer is responsible for submitting the tax. Escrow agent/ title company will withhold it from the proceeds to the seller and will submit it on your behalf so they need your SSN. Very important - make sure the title company gives you that tax form in your closing document set. My memory is a bit foggy but I remember having to chase them down for the form.

 

[MyDogTink]

I would still reach out to your broker and see if they think there's anything you need to do for it and send them the email you received to see if this is expected or not. Regardless, you shouldn't have to pay anything. The tax is for the foreign seller to pay on any gains they may have made.

buyer is responsible for withholding the tax from proceeds to seller and then remitting to the IRS.

 

[MyDogTink]

Honestly the broker told me it was no big deal to purchase from a foreign seller. It was other DVC members on these boards that educated me on what the process is. When I look back, the deal wasn’t overwhelming great to be worried about this wrinkle. Again, keep that tax form in case the IRS reaches out in the future.

 

[Nicnicnic.nic]

Thank you all for all the great information!

I am grateful for this community

 

[Jimmy Geppetto]

A reputable title company will ensure the Seller uses a FIRPTA agent. The FIRPTA agent will either advise the title company to submit 15% withholding tax directly to the IRS or hold it in escrow while the seller applies for an exemption. In both scenarios you are protected however maintaining paperwork for proof and your own peace of mind is wise advice.