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industry-taxAnswered

For a foreign seller of U.S. real estate, why does FIRPTA feel like a closing problem first and an income-tax problem second?

MH
Monica Halesubscriber
April 18, 2026 1,769 views 1 answer
industryreal estateFIRPTAforeign sellerIRS

I want the operational IRS answer, not a vague warning that withholding may apply. Please explain why the buyer usually withholds on the amount realised rather than the gain, why Forms 8288 and 8288-A matter so much at closing, and why the seller still has a later return-stage job if they want proper credit or refund treatment.

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