Taylor Realty Group | Colorado Real Estate ExpertsTaylor Realty Group | Colorado Real Estate Experts

Serving Denver Metro And Boulder County Since 2004!

Serving Denver Metro & Boulder County Since 2004!
Voted 5280 Magazine's FIVE STAR REALTOR (13 Year Winner)
303-669-2744
michael@taylorrealtygroup.net
  • Menu
  • Home
  • Search Homes
    • Featured Listings
    • All Listings
  • Buy
  • Sell
  • Lease
  • Blog
    • See All Posts
    • Buyer Tips & Advice
    • Seller Tips & Advice
    • Market Conditions
    • Mortgages & Loans
    • Homeowner Tips
    • Personal & Biz Updates
    • Just Sold!
  • Resources
    • Preferred Partners
    • Home Wealth Analysis
    • Instant Home Valuation
    • Find Best Realtors in US
    • Community Pages
      • Broomfield, Colorado Community Information
      • Denver Community Page Guide
      • Thornton, Colorado Community Information
      • Westminster, Colorado Community Information
      • Arvada, Colorado Community Information
  • About
    • Get To Know Us
    • Testimonials
    • Let’s Talk! (Contact Us)
    • Just Sold!

The Foreign Investment in Real Property Tax Act (FIRPTA) and You

Buying and selling a piece of real estate in the US is already a pretty involved and often complex process. When you add in the extra level of difficulty of buying a property owned in the US by a foreign citizen, then things ratchet up in difficulty level for sure. In that case, the oft dreaded FIRPTA rules kick in and you, the buyer, may be on the hook for up to 15% of the sale amount as income tax for the seller. But, don’t despair! We can help walk you through the process and answer some of the questions you may have. If, after reading this article you still want to know more or you have additional questions, please give us a call at: 303 669 2744 and we will be happy to help!

They say that there are two true guarantees in life: death and taxes, and the FIRPTA regulations are no exception. In fact, they are basically exhibit A for proving the point of that idiom. Why? Because Uncle Sam says that any income received within the US has to be paid, even if you aren’t a US citizen and even if you’ve never set foot in the United States. If you own a property in America and you sell it, you, as a foreign citizen are still responsible to pay the US government income tax on that sale.

That is the beauty of US tax law! However, if a foreign national does not end up paying the income tax on the property they sold, then the buyer, typically a US citizen, is responsible for paying Uncle Sam, and that is where FIRPTA kicks in. The good news is that there are a few exceptions. Here they are:

If the property sells for less than $300,000:

If the property in question is selling for less than $300k and the buyer intends to reside in it for at least 51% of the time during the next two years, then the property is exempt from the FIRPTA withholding (usually 10%) if and only if the buyer signs an intent to reside affidavit at the closing.

If the property is selling for over $300,000 but less than $1,000,000:

If the property is between $300k and a million dollars, then the buyer can again file an intent to reside affidavit at the time of closing which then reduces the withholding amount to 10%. If in any scenario the buyer does not intend to reside or doesn’t submit the affidavit or the property is selling for over $1,000,000, then the withholding amount will be 15% of the sold amount.

Withholding Certificate

The seller can file for what is known as a “Withholding Certificate” with the IRS. This document makes is so that the seller can have a reduced withholding amount taken out of the property transaction. Please see a CPA and/or tax attorney about this if you have any questions in order to get it filed and completed properly. This can save you a lot of time and money if done correctly.

Buyers: Be diligent and ask your real estate agent if the property in question is owned by a foreign national so that you can enter the transaction knowing all of the rules that apply. For more information check out the IRS’s website on FIRPTA here and here.

Sellers: Communicate with your agent and with potential buyers so they are informed of the liabilities and additional rules that apply with this transaction.

 

All in all, you don’t need to be an expert in FIRPTA rules to have a successful real estate transaction, but it helps to know the basics. Please contact us today if you have any additional questions or if you would like to buy or sell a property in Colorado in the near future. We’ll take good care of you. Phone: 303 669 2744.

Posted in: Buyer Tips & Advice, Seller Tips & Advice, The Blog, Uncategorized

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Post navigation

« 10 Worst Home Showing Offenses For Sellers
Renting or Buying? Get Off the Fence and Into a New Home! »

Blog Categories

    • ▼Buyer Tips & Advice (85)
      • Buying Foreclosures (7)
      • Buying Short Sales (4)
      • Mortgages & Loans (9)
      • New Construction & Home Builders (4)
      • Transaction Tips (10)
      • Working With A Realtor (4)
    • ▼Seller Tips & Advice (81)
      • Market Conditions/Trends/Insights (8)
      • Listing & Marketing (8)
      • Offers – Negotiating – Closing (4)
      • Choosing A Realtor (4)
      • Short Sales FAQ (5)
      • Thinking About Moving (Deciding If It Makes Sense) (4)
    • Market Updates (62)
    • Homeowner Tips (26)
    • Mortgages & Loans (24)
    • Personal & Biz Updates (32)
    • Weird ‘n Wacky News (4)
Search for:
WHY Taylor Realty Group?
Best Broomfield CO Real Estate Agent RealtorColorado home buyers and sellers need a consultant, not a salesperson. Our “STRATEGIC” approach is committed to providing Expert Guidance & Friendly Personal Service.
  • Unique Marketing System For Sellers = More $$ / Faster Results
    Learn More
  • Buyer Consulting Services = Smart, Confident Purchases
    Learn More

Get Started: Contact Mike Now!

Testimonials: Success Stories

Found Our Dream House

We rented with Michael for 3 years and they helped us looked for our dream house for 2 years.  Great Experience.

Bryce Jensen
Mike is a bulldog

Mike and his team are absolutely wonderful. They are all on top of it and super responsive. Mike is a bulldog and really knows his business. Everything went super smooth. I...

Cassie Jensen
Understands BOTH the Micro AND Macro Housing Trends

Super professional. More importantly Michael is the 1st realtor I’ve interacted with who understands both the micro AND macro housing trends. He also seemed to care about...

Greg Davenport
Honest, Professional and Knowledgeable

Michael sold us our first home and then a few years later we had to relocate and he sold our home for us. He’s honest, professional, knowledgeable and efficient. We were ...

Sean & Alyssa Burroughs
Future Dream Home

Mike and his team got us our starter home when we weren’t sure if we could get a home. Then helped us get our dream home by selling our starter home for more then we coul...

Emily Hauther

Read More Testimonials »

Socialize With Us!

Thinking About SELLING?
Seller Success Guide
  • What’s My Home Worth?
  • First 5 Things To Do
  • Interviewing Realtors: 16 Questions
  • Negotiating Like a Pro
  • Keep The Sale From Crashing

See SELLER Success Guide!

Thinking About BUYING?
Buyer Quickstart Guide
  • Clarify Your Goals
  • Choosing The Best Mortgage & Lender
  • How To Find Best Listings First!
  • Negotiate Best Possible Offer & Make Sure It Closes

See BUYER Quickstart Guide!

Homes For Sale By City

Let's Talk! How can I help?
First Name
Last Name*
Email
Comments
Lead Source

Contact Us

Taylor Realty Group

303-669-2744
michael@taylorrealtygroup.net

1499 West 120th Ave #110 Westminster CO 80234

Get Our Email Newsletter

Explore Cities

  • Arvada
  • Aurora
  • Boulder
  • Brighton
  • Broomfield
  • Castle Rock
  • Centennial
  • Commerce City
  • Denver
  • Englewood
  • Erie
  • Firestone
  • Frederick
  • Greenwood Village
  • Highlands Ranch
  • Lafayette
  • Lakewood
  • Littleton
  • Lone Tree
  • Longmont
  • Louisville
  • Northglenn
  • Parker
  • Superior
  • Thornton
  • Wheat Ridge

Meet Michael, Your Real Estate Agent

Real Estate Agent Broomfield Thornton Westminster Colorado Colorado home buyers and sellers need a consultant, not a salesperson. I specialize in Broomfield, Thornton, & Westminster real estate but am often referred to help people throughout Denver Metro & Boulder County! My commitment to you: Expert Guidance & Friendly Personal Service!
  • 5280 Magazine’s FIVE STAR REALTOR (13 Year Winner)
  • Featured on HGTV!
  • Top 5% of Realtors Nationwide!
  • Full Time CO Realtor Since 2004
logos-325

Meet Michael - Your Consultant

Voted 5280 Magazine's FIVE STAR REALTOR
Based on Overall Client Satisfaction (2010 - 2018) 

Taylor Realty Group | Since 2004

1499 West 120th Ave #110 Westminster CO 80234

© 2025 · Log in · Privacy Policy

MENU
  • Home
  • Search Homes
    • Featured Listings
    • All Listings
  • Buy
  • Sell
  • Lease
  • Blog
    • See All Posts
    • Buyer Tips & Advice
    • Seller Tips & Advice
    • Market Conditions
    • Mortgages & Loans
    • Homeowner Tips
    • Personal & Biz Updates
    • Just Sold!
  • Resources
    • Preferred Partners
    • Home Wealth Analysis
    • Instant Home Valuation
    • Find Best Realtors in US
    • Community Pages
      • Broomfield, Colorado Community Information
      • Denver Community Page Guide
      • Thornton, Colorado Community Information
      • Westminster, Colorado Community Information
      • Arvada, Colorado Community Information
  • About
    • Get To Know Us
    • Testimonials
    • Let’s Talk! (Contact Us)
    • Just Sold!