If you are from another country you will incur a tax that will be taken out of your funds at closing.
“The sale of an interest in real property within the United States by a “foreign person” is subject to tax liability under Foreign Investment in Real Property Tax Act of 1980 (FIRPTA). FIRPTA authorized the United States to tax foreign persons on dispositions of U.S. real property interests. Generally, any buyer of real property from a foreign individual is required to withhold 15% of the amount realized on the sale. If the seller is a foreign person and the buyer fails to withhold, the buyer may be held liable for the tax.” –Damien Zumbrennen, Attorney at Law
Please consult with your tax professional for more information.
Will you experience a Capital Gains event in the sale of your property? Have you used your property as an investment for part of or the whole time? If so, there is a tax code called 1031 that may allow you to transfer all or some of your proceeds to a new, like-kind property of equal or greater value. Consult your tax professional to find out how to defer your capital gains taxes, by purchasing another income-producing property.
Due to the nature of our second home and investment property market, 1031 Exchanges make up for 50% of our sales. We can write a contingency in the contract so that the other party agrees to help facilitate the 1031 exchange where necessary. We are quite familiar with how to work as a team to coordinate the transaction from the real estate perspective.
You will need a “Qualified Intermediary” to help with the allocation of funds. Before you decide to buy or sell and move funds, it is essential that you talk with us and the intermediary. Please call us right away if you think you will be buying or selling and taking part in a 1031 Exchange. We can put you in touch with intermediaries who can assist you.
For more information on 1031 Exchanges, watch my YouTube video here.