Who actually transfers the payment to the IRS when selling a property?
Hello friends,
I'm preparing for the sale of my first property in the United States, which will list my name and my wife's name.
As part of the sale, there is a 15% payment to the IRS from the sale price (!)
Who actually transfers the payment to the IRS?
Of course the deal is accompanied by an attorney who also accompanied me in buying.
I would love your help and recommendations!
Hagay Messer Moscovich
I make sure to add a clause in the purchase agreement in the comments
I personally sold two properties with full exemption. You are welcome to contact me. The buyer should sign an affidavit that intends to live on the property for at least two years and, as stated, the sale amount should be less than $ 1,000.
right. But this is a very important detail that should have been emphasized.
I just haven't run into it to this day selling a property
which
You did not specify that there is an exemption for the price lower than 300000 dollars
And certainly Max and thanks for tagging.
1. This is a withholding tax starting from the sale of real estate to a foreign resident of a non-US Israeli seller. The withholding tax rate is 15 percent of the sale price
See:
https://www.irs.gov/individuals/international-taxpayers/firpta-withholding
This is a duty that applies to the purchaser (and is actually exercised by the purchaser's attorney or the TITLE company
3. They must provide you with an official form so that you can qualify for this tax upon filing the annual tax report.
https://www.irs.gov/pub/irs-pdf/f8288a.pdf
4. There is a possibility in some cases of reduced or reduced deduction
Please say if there are any further questions
Asher Turiel, CPA (Israel), Tax Advisor (USA)
The Closing Insurance is supposed to take care of the transfer of funds at the closing date.
Date
Should be done by the company