Tax Rules for Foreign Investors in U.S. Real Property

U.S. realtors and rental agents/property managers are encountering an increasing number of situations that involve foreign persons acquiring U.S. real estate. The tax rules governing ownership disposition of U.S. real estate by foreign persons vary in many ways from those that apply to U.S. persons. Understanding the tax laws is critical for real estate professionals to avoid personal liability for improper U.S. federal income tax compliance.

Realtors, Rental Agents & Foreign Owners of U.S. Real Estate
FIRPTA & Other Tax Information for…
Foreign Investment in Real Property Tax Act (FIRPTA)

Individual Taxpayer Identification Numbers (ITINs)

Publications:

Publication 515, Withholding of Tax on Non-Resident Aliens and Foreign Entities
Publication 519, U.S. Tax Guide for Aliens
Publication 901 , U.S. Tax Treaties

Forms:

Form 1040NR, U.S. Nonresident Alien Income Tax Return
Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding
Form 1042-T, Annual Summary and Transmittal of Forms 1042-S
Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests (Section 1445)
Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests (Section 1445)
Form 8288-B, Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests
Form 8833, Treaty-Based Return Position Disclosure
Form W-7, Application for IRS Individual Taxpayer Identification Number
Form W-8 BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding

Contact the IRS with a Tax Question...

- Click Here – to submit a question through the IRS.gov web site