CALCULATOR
Calculate What You Will Owe the IRS
FIRPTA is simply a withholding to ensure you pay your taxes, it is not the total amount of taxes that will be due. This can be complicated to determine, which is why we have created a calculator to make answering these questions simple:
How much money will be withheld at the time of sale?
How much
money will I get back and when?
How much will I owe in total taxes?
How FIRPTA Withholding Is Determined
Whether or not the buyer intends to use the property for personal use is a factor. In some cases, the buyer must sign an affidavit at or before closing that states they intend to use the property for personal purposes for at least 50% of the time that the property is occupied for each of the first two years immediately after closing. Additionally, the purchase price of the property is a factor, as shown here:
| Withholding % | 0% | 10% | 15% |
|---|---|---|---|
| Purchase Price < $300k For Buyer Personal Use |
X |
||
| Purchase Price < $300k Not For Buyer Personal Use |
X |
||
| Purchase Price > $300k but < $1,000,000 For Buyer Personal Use |
X |
||
| Purchase Price > $300k but < $1,000,000 Not For Buyer Personal Use |
X |
||
| Purchase Price > $1,000,000 |
X |
