Is Every Property Under $300,000 Exempt From FIRPTA, NO!

Sales Price is the last question!

First

Will the buyer or a family member must have definite plans to”reside” for at least 50% of the number of days the property is used by “any” person during each of the TWO TWELVE MONTH periods following the date of the transfer, if no, the transaction is subject to FIRPTA withholdings.

When counting the number of days that the property is used, do not count the days the property will be vacant. For this exception, the buyer must be an individual.

Second

Will the buyer sign the certificate of intent to occupy, if no, the transaction is subject to FIRPTA withholdings.

Third

Is the purchase price $300,000 or less?  If the answer to the first and second question are yes and the purchase price is $300,000 or less, the transaction is exempt from FIRPTA withholdings.

NOTE:  If the purchase price is $300,001 it is subject to FIRPTA withholdings.

Also if the property is raw land or being purchased as investment rental, it is always subject to FIRPTA Withholdings, regardless of the purchase price.