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Helping You Avoid Property Tax Issues With Your Foreign Investments

In South Florida, increasing numbers of foreign investors are investing in the U.S. real estate market. When individuals or businesses from outside the U.S. sell commercial or investment properties to U.S. citizens or companies, a special tax liability arises. It is important to understand your rights and responsibilities regarding this real estate tax or you may be liable for a tax you were not originally obligated to pay.

Combining International, Financial And Tax Law Knowledge For Our Clients

At Bucci Law Offices, we will work closely with you, advising you about your real estate tax responsibilities associated with all types of property transactions and guiding you to limit your potential tax liability and protect your assets. Our experienced and highly educated tax lawyers have several planning techniques that may mitigate the effects of the requirements of the Foreign Investment in Real Property Tax Act (FIRPTA).

Christin Bucci is an attorney and certified public accountant (CPA) and holds a Master's in Taxation and a Master's in International and Comparative Law from Georgetown University Law Center.

The FIRPTA Tax: What You Don't Know About U.S. Taxes May Cost You Money

  • Are you a foreigner looking to buy U.S. real estate?
  • Are you a foreigner who is selling your U.S. property?
  • Are you purchasing property from a foreigner?
  • Are you a citizen of another country who owns a vacation home or investment property in the U.S.?

The Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) places a tax on foreign individuals who sell U.S. property. This includes any sale, gift or other transfer. A U.S. property interest includes everything from residential property to commercial property and any interest in a domestic corporation with U.S. real property holdings.

Dedicated Assistance With Complex Real Estate Tax Issues

At Bucci Law, we provide effective, personalized legal assistance to international and domestic clients regarding complex tax issues, including issues of real property transfers. Many foreign investors, as well as domestic buyers who purchase real estate from a foreign seller, are in the dark when it comes to their withholding obligations.

The FIRPTA tax is on the person selling or transferring the property. However, the burden of withholding the tax is on the buyer — or recipient — of the property. If you are the buyer, it is your responsibility to determine whether the seller is foreign. If so, you are responsible for withholding FIRPTA tax — typically, 10 percent of the purchase price. Failure to do so may result in personal liability for any tax due.

For foreign investors, proper tax planning is key, especially given the complexities of U.S. tax laws. Whether you are a buyer or a seller, contact Bucci Law before your closing. We will educate you about your tax obligations before you buy or sell real property to keep you from making a costly mistake.

The Department Of Treasury Is Scrutinizing Cash-Only Real Estate Purchases

Complicating matters further, the Department of Treasury's Financial Crimes Enforcement Network (FinCEN) is currently requiring all title companies to disclose the names of individuals who pay cash for residential property worth $1,000,000 or more in Miami-Dade, Palm Beach and Broward counties. This is just one more regulation that buyers need to understand when purchasing real estate.

Learn More About FIRPTA And Get The Legal Guidance You Need

For more information about your FIRPTA responsibilities and for highly professional assistance with all taxation matters, contact Bucci Law online or call 954-900-9107. Based out of Fort Lauderdale and Miami, we handle cases throughout Florida, the United States and worldwide.