10% Foreign Withholding Tax - Posted by Jeremy

Real Estate Investing
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Posted by Jonathan on September 25, 2003 at 02:27:06:

I believe they will need to get an Individual Tax Identification Number (ITIN). IRS form W-7. Double check with a tax expert.

Here is a link to tax withholding info.
http://www.irs.gov/pub/irs-utl/firpta.pdf

Also, go to www.IRS.gov and do a search for “FIRPTA” - (Foreign Investment in Real Property Tax Act)

You may also want to see if your state has any FIRPTA requirements. California requires 3 1/2%.

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10% Foreign Withholding Tax - Posted by Jeremy

Posted by Jeremy on September 24, 2003 at 23:16:09:

I am purchasing a piece of property from a seller who lives in Canada. I do know their is a 10% withholding tax and I am not sure if they have a social secuirty number to offset that. Assuming they dont, what is the usual procedure to get this money back? Is it fairly easy and can someone guide me to some forms or information so I would be able to assist the seller, because I dont think they will be very happy but anything to make it easier. Thanks