Team Donovan Blog - FIRPTA

What to Consider When Selling Your Vacation Home in a Divorce

When you bought a vacation home in Kissimmee, you probably imagined you’d enjoy years of fun in the sun with family and friends. You likely never dreamed that a divorce would put an end to those plans.

Divorcing couples have to make tough decisions that impact their financial future. This is especially true when having to sell a vacation home. Couples need to safeguard their investments, and divorce is one of the biggest threats they need to think about when buying and selling their Kissimmee vacation homes.

Important Decisions to Consider before Selling Your Home in a Divorce 

Before you list your home on the market, decide what you’re willing to sell the home for and how you’ll cover the costs of repairs or maintenance. You’ll also need to…

How to Quickly & Easily Sell Your Orlando Vacation Home

Orlando’s economy has steadily improved over the past few years, making this an attractive time for some vacation home owners to put their properties up for sale. If you’re not using your second home as frequently as you intended, it may not make financial sense to maintain ownership. Here are a few tips to help you sell your Orlando vacation home quickly and for the best price.

Find an Experienced Real Estate Agent– Look for a real estate agent who is not only familiar with the area, but is experienced in the sale and purchase of vacation homes. Orlando has become a true international market, with buyers coming from all over the world to purchase properties. Make sure your agent has a marketing plan to reach those potential buyers. For instance, Team…

What You Need to Know to Buy a Holiday Home in Orlando – Part 2

Are you thinking about buying a second home in Orlando? Many travelers from Canada and the United Kingdom come to Central Florida year after year to spend a relaxing holiday. At some point, it may make more financial sense for you to buy a vacation home in Orlando, rather than spending money on a hotel or vacation rental home. In a previous article, we shared five things you should know before buying an Orlando holiday home. Here are a few more important points to consider before making a purchase. 

1. Determine the Financial Stability of the Homeowners’ Association – Many Orlando vacation homes are located in a housing development that is governed by a homeowners’ association (HOA). An HOA makes and enforces rules for the properties in its…

FIRPTA Withholding Rate to Change in February 2016

Thinking about selling your Orlando vacation property?  You should be aware of an upcoming change in the U.S. Foreign Investment in Real Property Tax Act, otherwise known as FIRPTA. 

As of Feb. 16, 2016, any non-resident alien who sells an interest in U.S. real property will be subject to a 15 percent withholding rate on FIRPTA at closing. That is an increase from the current rate of 10 percent. 

The change means that anyone who buys property in the U.S. held by a foreign seller must withhold 15 percent of the gross purchase price. The title company remits the amount to the IRS at closing. The withholding would generally offset any tax actually due from the non-resident alien on the sale and would be eligible for a refund to the extent that the…