FIRPTA: Your Guide to US Sale Withholding
When you sell US property as a non-resident, federal withholding is held back at closing. Here's what you need to know and how to maximize your recovery.
What Is FIRPTA?
FIRPTA stands for the Foreign Investment in Real Property Tax Act. When you sell US real estate as a non-US resident, federal law requires the buyer's closing agent to withhold a percentage of your sale proceeds and send it to the IRS.
The Standard Rate: The standard FIRPTA withholding rate is 15% of the sale price. This amount is held at closing and sent to the IRS within 20 days.
The Good News: Most sellers recover their full FIRPTA withholding. We work closely with your CPA to coordinate proper filing and maximize your recovery. Outcomes depend on your individual circumstances, which your CPA will review.
FIRPTA Withholding at Closing
Who Holds the Withholding?
The buyer's closing agent (typically a title company) is responsible for withholding and sending the funds to the IRS. It's deducted from your proceeds at closing.
Getting Your Money Back
After you file your US tax return, you may receive a refund if the withholding exceeds your tax liability. Your CPA will guide you through the refund process.
FIRPTA Calculator
Getting Your FIRPTA Funds Back
Work with a qualified CPA to explore these options:
Form 8288-B: Request reduced withholding if your expected tax liability is less than 15% or you have a capital loss. Must be filed with supporting tax documentation. Your CPA determines if you qualify.
Form 8288-A: The closing agent's formal report to the IRS of the FIRPTA withholding. Proper filing ensures the IRS credits your withholding when processing your refund claim.
File Your Tax Return: Claim your refund when you file your US return. This is one path for reclaiming overpaid withholding.
Team Donovan's Role: We work to recover your FIRPTA withholding as quickly as possible in all cases. We coordinate with your CPA to identify the best strategy for your situation and ensure proper filing and documentation. Your CPA makes the tax decisions; you and your CPA decide which strategy to follow. We support whatever you choose and coordinate all parties to expedite your recovery.
Start Early: Connect with a CPA at least 30 days before closing. The earlier you plan, the better we can coordinate to protect your interests.
Ready to Sell Your Orlando Property?
Team Donovan guides non-US resident sellers through the entire process — from FIRPTA planning through closing.
Disclaimer: This calculator and information are for educational purposes only and do not constitute tax, legal, or financial advice. FIRPTA withholding, refund eligibility, and tax outcomes depend entirely on your individual circumstances and applicable US tax law. You must consult with a qualified CPA or tax professional regarding your specific situation.
No Guarantee: Withholding amounts are not guaranteed to be refunded. Refund eligibility depends on your actual tax liability and IRS processing. Refunds typically take 4–12 weeks after your return is filed. Team Donovan does not provide tax or legal advice; we coordinate with CPAs and closing professionals.
Calculator results are estimates only. Each sale is unique. Verify all figures with your CPA, title company, and other professionals involved in your transaction.