| Federal
law requires that a buyer of real property must withhold
and send to the Internal Revenue Service (IRS) l0% of
the gross sales price if the seller of the real property
is a "foreign person." The primary grounds for
exemption from this requirement are: the seller’s
non-foreign affidavit and U.S. taxpayer I.D. number; a
qualifying statement obtained through the IRS attesting
to other arrangements resulting in collection of, or exemption
from, the tax; or the sales price does not exceed $300,000
and the buyer intends to reside in the property. Because
of the number of exemptions and other requirements relating
to this law, principals and agents should consult the
IRS or a qualified tax advisor for more information.
(Title 26 U.S. Codes, Section 1445)
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us for more info on CA Foreign Investment in Real Property
Tax Act
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