FIRPTA & UK member selling DVC

Steve133

Earning My Ears
Joined
Apr 3, 2013
I'm selling my DVC holdings and have been advised that I can apply for an exemption to the FIRPTA (the US tax on foreign property owners).

Has anyone any experience of this and whether it's likely to be granted? I would be doing it through a recommended, qualified FIRPTA specialist.

Thanks.

Steve
 

finchy3

Mouseketeer
Joined
Jan 30, 2014
The Timeshare store will recommend a FIRPTA specialist, they pointed us in the direction of Wade who was very good.

It was worthwhile us pursuing it due to the amount held back.
 

Mikamarii

Mouseketeer
Joined
Aug 30, 2018
I'm selling my DVC holdings and have been advised that I can apply for an exemption to the FIRPTA (the US tax on foreign property owners).

Has anyone any experience of this and whether it's likely to be granted? I would be doing it through a recommended, qualified FIRPTA specialist.

Thanks.

Steve
Nancy was recommended to us by TSS. We’re from Canada but same deal. For us it was very much worth it. We are on a delayed closing so have lots of time to get the with holding certificate. In fact, we should get it before we close so won’t have any money held back.

For us the US govt was going to take almost 5k. We actually owe 0 to the us govt as we sold for what we bought (after all fees). So with the with holding certificate the US govt won’t be holding any money.

There shouldn’t be a reason you don’t get it. The only reason you won’t get it ( from what I’ve read) is if it’s applied for too late. The title company can only hold the firpta tax in escrow for so long so if you don’t have it in time then they remit the money to the irs and you need to file a us tax return to get it back. All the withholding certificate does is show the irs that your gain is less than 15% of the gross sale. They won’t deny it if you can show that. At least to my understanding.

Having said all that if your contract is small it may not be worth it to apply. Let’s say your contract is worth 10k when you sell. firpta will take 1500. It costs about 450 for a firpta specialist leaving you with about 1050. If you made a profit you have to pay 20% on the gain so that lowers how much you get back. It may not be worth it to get tangled in the irs for less than 1k as you need a US TAX ID to apply for a firpta with holding.

For us it was almost 8k Canadian we would get back so very much worth it for us to get it back. What I suggest is line up a specialist now and when you agree on a sale let them know so they can begin the process. It’s take about 90ish days to get a certificate so the earlier you apply the faster it will get approved.
 

Steve133

Earning My Ears
Joined
Apr 3, 2013
Thank you both for your responses. I'm definitely going to go down that route.

One holding is for 200 points, the other for 25 points, so may not be worth doing for the 25 (?)
 



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