How FIRPTA Can Tie Up Your Real Estate Sale Proceeds

For many sellers, closing is the moment when months of planning finally turn into net proceeds.

But for some sellers, a large portion of those proceeds may be withheld at closing under a federal rule known as FIRPTA.

If that happens late in the transaction, it can come as a major shock.

In plain English, FIRPTA can cause 10% to 15% of the sale price to be withheld and sent to the IRS, even before the seller’s final tax liability is determined. In some cases, that money may not come…

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