ITIN process

[ljlaurajane]

Has anyone been through the process of getting an ITIN number? Ideally in the UK. Wondering if it's worth the hassle to buy from another international? Understand its approx $50 per person on the license, but then do you need to get the paperwork signed in the UK or recorded mail to the US (no idea what the cost would be for that?)

 

[macman123]

Following as I may need one in future.

I have found a company online that will do it for $400.

 

[Kaadk]

Mine was done for work purposes so they helped, but as I recall, the process was pretty simple. I had to fill out a document, send it in, and a few months later, the IRS provided a number.

 

[Jaguar Skills]

What is an ITIN number?

 

[Kaadk]

Individual Tax Identification Number. Basically the same as the US's SSN, (or here in Canada our SIN) but without some of the rights that SSN grants. For all intents and purposes though, I can use my ITIN anywhere it asks for an SSN (like background checks at a new client site).

 

[carli_h]

I’m from the U.K. and was told that I did not have to have an ITIN number to buy from an international seller. I thought I did but the broker advised that any reputable closing company will manage any risks. I may stand corrected on this.

I didn’t buy in the end but I was advised I’d only need an ITIN # for selling or if I was to rent points (other than with David’s).

 

[Kaadk]

You need the ITIN for income tax purposes. A purchase isn't a taxable income. Renting on the other hand, would be. And during the sale, there might be depending on how they determine whether or not there was a taxable gain. I'll admit I know very little about how sales relate to capital gains/losses.

 

[CanadaDisney05]

You need the ITIN for income tax purposes. A purchase isn't a taxable income. Renting on the other hand, would be. And during the sale, there might be depending on how they determine whether or not there was a taxable gain. I'll admit I know very little about how sales relate to capital gains/losses.

As the buyer, if you are buying from an international seller (who may have taxable income on the transaction), you are responsible for withholding a 15% withholding tax and remitting it to the govt. From what I understand, the closing company deals with all of this on your behalf. But that is the reason as the buyer you would need an ITIN.

 

[macman123]

If you are international and buy from a seller outside the USA you need an ITIN, otherwise you get I think 15% tax deducted.

 

[carli_h]

If you are international and buy from a seller outside the USA you need an ITIN, otherwise you get I think 15% tax deducted.

I thought this but have since been corrected by one of the big resale companies and on these boards. You only need this in case the international seller does not pay their tax. A good closing company will hold back the tax from the seller which should also be included in the contracts so it should not impact a buyer.

https://www.disboards.com/threads/canadian-or-other-international-dvc-buyers.3788253/#post-61476083

 

[macman123]

I thought this but have since been corrected by one of the big resale companies and on these boards. You only need this in case the international seller does not pay their tax. A good closing company will hold back the tax from the seller which should also be included in the contracts so it should not impact a buyer.

https://www.disboards.com/threads/canadian-or-other-international-dvc-buyers.3788253/#post-61476083

Ah, I looked at buying from DVC marketplace and I an UK and they are outside the UK. They told me I would need an ITIN......

 

[CanadaDisney05]

I thought this but have since been corrected by one of the big resale companies and on these boards. You only need this in case the international seller does not pay their tax. A good closing company will hold back the tax from the seller which should also be included in the contracts so it should not impact a buyer.

https://www.disboards.com/threads/canadian-or-other-international-dvc-buyers.3788253/#post-61476083

I'm not 100% sure of this, but it doesn't really make sense to me. The closing company is just the middle man. The buyer is still the one responsible for remitting the 15% withholding to the IRS. You can't remit to the IRS without an ITIN or SSN. The closing company will actually do the work of filling out the paper work and remitting it, but you are still the one signing the document.

 

[Minniemoo15]

I thought this but have since been corrected by one of the big resale companies and on these boards. You only need this in case the international seller does not pay their tax. A good closing company will hold back the tax from the seller which should also be included in the contracts so it should not impact a buyer.

https://www.disboards.com/threads/canadian-or-other-international-dvc-buyers.3788253/#post-61476083

I am Canadian and when buying from a reputable broker last year - they told me I needed an ITIN number to buy from an international seller. UScitizens need to provide their SSN when buying from an international seller. As a buyer they told me it was my responsibility to withhold the tax but that our closing company would take care of all that. They had an ITIN specialist that would get us numbers for 25$ each.

We chose to buy instead from an American seller so that we didn’t need to get ITIN numbers and be liable for any taxes, though the risk did seem low going through a reputable company.

 

[carli_h]

I would suggest you follow guidance from your broker. It was what I advised but there seems to be conflicting advice. We didn’t buy so I am by no means an expert.

I checked and the guidance I was given referred to title company rather than closing. Apologies.