Anyone dealt with seller financing with a foreign seller? How does the FIRPTA issue work in this scenario?
There are lots of foreign owned properties in my area that look to be great candidates for seller financing, but I'm cautious to pursue without better understanding this issue.
Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
2y
Use a title company
You file Form 8288 with the IRS and the title company holds out 15% of sales price for the IRS - the state may also want a piece depending on location.
Along with the form, you submit 15% withholding funds to the IRS and there are timelines.