- IRS

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

Posted by Team Donovan on March 23rd, 2016

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

Posted by Team Donovan on January 6th, 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…