What do Canadians, Real Estate and FIRTPA have in common?

What is FIRPTA?

If you're a Canadian citizen selling a vacation home in the United States, it’s important to understand the Foreign Investment in Real Property Tax Act (FIRPTA). This U.S. tax law affects foreign nationals when selling U.S. real estate, requiring a percentage of the sale price to be withheld by the buyer for tax purposes.

In a nutshell the law requires 10-15% of the sales price to be held by the IRS upon the successful sale of your property to cover any taxes owed on the net profit gained.  The following year you file your taxes with the IRS and receive a refund if the withholding exceeds your tax liability.

U.S.-Canada Tax Treaty

The U.S.-Canada tax treaty may allow you to claim a foreign tax credit, reducing your overall tax burden and avoiding double taxation. However, understanding this process can be complicated without the right expertise.

Let Me Help

Navigating FIRPTA regulations can be tricky, but you don’t have to do it alone. As a realtor with extensive experience helping Canadian clients sell their U.S. properties. I can guide you through the process.  I have relationships with CPAs who specialize in FIRTPA  ensuring compliance with the law and helping you understand your tax obligations.

If you're ready to sell or need more information, feel free to reach out. I'm here to make your real estate transaction as smooth as possible.