If you’re Canadian(Foreign), and own property in Arizona, then FIRPTA will be a part of your transaction.
Definition of FIRPTA:
FIRPTA is a tax law that imposes U.S. income tax on foreign persons selling U.S. real estate. Under FIRPTA, if you buy U.S. real estate from a foreign person, you may be required to withhold 10%-15% of the amount realized from the sale. The amount realized is normally the purchase price.
CLICK HERE to see IRS video on FIRPTA.
As a foreign seller it is essential to be represented by an agent that is highly experienced in dealing with FIRPTA transactions. This is us! We’ve partnered with Canadians on hundreds of transactions in the Greater Phoenix Area. We partner with cross border accountants that can assist sellers with their tax filings, and ensure that your US taxes are handled properly and professionally.
Contact Sherri to see if your property qualifies for a FIRPTA exemption, where you have zero withholdings.