FIRPTA regulations passed by the US Congress.

Starting on February 16 of this month the new FIRPTA regulations will take effect, the withholding tax will increase from 10% to 15% for some properties.
New guidelines will take effect:
- If the purchase price is $300,000 or less AND the Buyer, or a family member, intends to use the home as a residence (as provided for in the current regulations) no tax needs to be withheld or remitted;
- If the purchase price is more than $300,000 but does not exceed $1,000,000, AND the property will be used as the Buyer’s residence (as provided for in the current regulations) then the withholding amount will remain at 10%; and
- If the purchase price is more than $1,000,000, regardless of use by the Buyer, then the withholding amount will be 15%.
For more information on how you can be affected by the new regulation or exceptions, contact us to be directed to an appropriate Real Estate Attorney or Accountant that can handle your particular case with current FIRPTA Regulations.