Who Is Considered a Foreign Seller under FIRPTA

A Foreign Person is a non-resident alien individual, foreign corporation that has not made an election under section 897(i) of the Internal Revenue Code to be treated as a domestic corporation, a single-member LLC that has not elected to be taxed as a corporation, foreign partnership, foreign trust, or foreign estate.

Who is not included?

• A resident alien individual.
• A foreign individual that passes the Substantial Presence Test
• Foreign corporation that has made an election under IRC Section 897(i) to be taxed as a domestic corporation
• A Single Member LLC electing to be taxed as a corporation
• A Multi-member LLC taxed as a partnership
• A Multi-member LLC taxed as a corporation