Hi My name is An Flamand, I’m the Broker of Orlando Vacation Realty and I am speaking to you today out of sunny Florida. I’m in Central Florida, Disney vacation home area.
Today were going to talk about FIRPTA. FIRPTA is especially important for foreign nationals that own a property in central Florida and are thinking about selling their property. It is very important to know that when you are in the process, or you’re actually going to be selling your property, that 10% will be withheld as a foreign national for your taxes. You can actually do an ‘application for withholding certificate’ prior to the closing. This will actually shorten the time frame that they could withhold your 10%, or you could do an application for early refund – which is similar but is actually done after the closing. The importance of this is that, they are withholding 15% of the total purchase price for the simple reason to review if you owe any other taxes – or property taxes – or if there is anything outstanding on the property. As soon as they actually can clear that, you should normally get your monies paid back, your 10% should be paid back to you. However, it is important to know in advance that this will be withheld and there is a chance for you to shorten that time frame that the tax office is able to hold your 10%.
That’s today on FIRPTA. If you any other questions, please me at [mail_to email=”An@OrlandoVacationRealty.com”]An@OrlandoVacationRealty.com[/mail_to]. Thank you! Have a great day!