[WSBARP] FIRPTA gurus

[Craig Gourley]

Thank you Gretchen!

Gourley Law Group
Snohomish Escrow
The Exchange Connection

1002 10th Street / PO Box 1091
Snohomish, WA 98291

360.568.5065
360.568.8092  fax
Craig at glgmail.com<mailto:Craig at glgmail.com>


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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Valentine, Gretchen (TRGC)
Sent: Monday, August 05, 2019 2:17 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] FIRPTA gurus

The FIRPTA tax applies if the property is in the US and no exemptions apply.  Three of the exemptions are:



  *   Purchase of residence for $300,000 or less. If one or more individuals acquire U.S. real property for use as a residence and the amount realized (in most cases the sales price) is $300,000 or less, no withholding is required.


  *   No consideration paid. Withholding is not required if the amount realized by the transferor is zero (for example, the property is transferred as a gift and the recipient does not assume any liabilities or furnish any other consideration to the transferor).


  *   Transferor's nonrecognition of gain or loss. You may receive a notice from the transferor signed under penalties of perjury stating that the transferor is not required to recognize gain or loss on the transfer because of a nonrecognition provision of the Internal Revenue Code (see Temporary Regulations section 1.897-6T(a)(2)) or a provision in a U.S. tax treaty. You may rely on the transferor's notice, and not withhold, unless (a) only part of the gain qualifies for nonrecognition, or (b) you know or have reason to know that the transferor is not entitled to the claimed nonrecognition treatment.

If due, the amount of tax depends upon the fair market value of the real property.  Attached are the instructions for IRS Form 8288, which is my 'go to' reference for FIRPTA.

Gretchen

Gretchen Valentine | NW Regional Underwriting Counsel
Title Resources
Phone: 206-962-7744 |


From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Craig Gourley
Sent: Monday, August 5, 2019 1:49 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: [WSBARP] FIRPTA gurus

Good afternoon list mates.  I hope one of you FIRPTA gurus have an answer for me.  I have a Canadian client that wants to gift free and clear residential property to his Canadian son who legally lives and works in the US. I know there is no excise tax but not sure if we need to file anything on the FIRPTA side when no money changes hands and no debt is assumed.   Thanks in advance.   Craig

Gourley Law Group
Snohomish Escrow
The Exchange Connection

1002 10th Street / PO Box 1091
Snohomish, WA 98291

360.568.5065
360.568.8092  fax
Craig at glgmail.com<mailto:Craig at glgmail.com>


Be Aware! Online banking fraud is on the rise. If you receive an email containing Wire transfer instructions call us immediately to verify the information prior to sending any funds!

CONFIDENTIALITY NOTICE: This electronic mail transmission may contain legally privileged, confidential information belonging to the sender. The information is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or taking any action based on the contents of this electronic mail is strictly prohibited. If you have received this electronic mail in error, please contact sender and delete all copies


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