Earning My Ears
- Jul 11, 2022
Is it possible for a international buyer to buy from an international seller?
hmm thank you. So if the seller just didn't pay the 15%, the IRS could come to me for the money? That's kinda worrying. I did speak with a registered tax agent who can get me the ITIN number and she has worked on DVC sales before.Yes its doable. FIRPTA requires the International seller to submit 15% withholding tax (of the purchase price) to the IRS. In the event the Seller does not do this, the IRS reserves the right to collect that tax from the owner of the deed (ie. the new owner). Because of this, the IRS requires an ITIN for both the buyer and seller, thus opening up a file with the IRS. This is why many people shy away from it, or even recommend against it. However, if you use a good FIRPTA specialist and a title company that does their job effectively, there should be no issue so long that the FIRPTA tax is submitted properly.
Edit: I am not a tax specialist and buyers should always seek competent advice from a tax expert - not some "Jimmy" from disboards.
I’m international and have bought from another international member. I was required to get an ITIN and the title company ensured that the 15% was withheld so there is no need to worry. Just ask the broker and escrow agent to ensure that the 15% is paid/withheld.hmm thank you. So if the seller just didn't pay the 15%, the IRS could come to me for the money? That's kinda worrying. I did speak with a registered tax agent who can get me the ITIN number and she has worked on DVC sales before.
I wouldn’t say there is no risk, but the risk is not as great as some make it out to be.Buying from an International seller no matter who you are, has a massive advantage in that they don’t seem to ROFR it. All the main brokers and title companies deal with loads of international sales and hold back the 15% from funds in, so should be no risk for the buyer.
IMO There should be no tax implications for international buyers if the 15% have been paid.I wouldn’t say there is no risk, but the risk is not as great as some make it out to be.
There is risk the title company doesn’t remit the FIRPTA properly causing headache for the buyer months down the road.
There could also be tax implications for some international buyers who now have an ITIN with the USA. As Canadian those issues are non-existent or very small but that may not be the case for all countries.