[WSBARP] Canadian owner & FIRPTA

[Doris Eslinger]

I am researching whether a Canadian Seller qualifies for a FIRPTA exemption.  The decedent was a US person, somehow the probate attorney had the client (a Canadian) took title of the real estate. She is now selling the real estate (at a loss from the DOD value) and I want to find a way to avoid the FIRPTA deduction so that she won’t have to file a return to get it back later.  I found an article on the IRS website titled “Exceptions from FIRPTA Withholding.”  Paragraph 7 states that FIRPTA withholding is not required if the amount the transferor realizes is $0 (I copied and pasted the link and language below).   Interestingly, paragraph 6 requires a filing of a notice with IRS but for #7, it has no requirements.  I appreciate any comments. In any event, client is ready to pay it if can’t get around it.  Applying for a Withholding Certificate takes too long.

https://www.irs.gov/individuals/international-taxpayers/exceptions-from-firpta-withholding#:~:text=Generally%2C%20FIRPTA%20withholding%20is%20not,is%20not%20more%20than%20%24300%2C000.

Generally, FIRPTA withholding is not required in the following situations; however, notification requirements must be met:

  1.  The transferor gives the transferee written notice that no recognition of any gain or loss on the transfer is required because of a nonrecognition provision in the IRC or a provision in a U.S. tax treaty. The transferee must file a copy of the notice by the 20th day after the date of transfer with the Odgen Service Center, P.O. Box 409191, Ogden UT 84409.
  2.  The amount the transferor realizes on the transfer of a U.S. real property interest is zero.


Regards,

Doris Eslinger
Attorney at Law
Eslinger Law Office, PLLC
2200 112th Ave NE, Suite 200
Bellevue, WA 98004
Phone: (425) 451-3237

----------------------------------------------------------------------------------------------------

This message and its attachments are intended only for the addressee.  Please do not forward this message to others without permission.  The information contained in this message is privileged, confidential, and protected by the attorney-client or attorney work product privileges.  Unauthorized forwarding, printing, copying, distribution, disclosure or use of such information is strictly prohibited.  If you are not the addressee, please promptly delete this message and notify the sender of the delivery error by return e-mail or you may call our office at (425) 451-3237. Nothing in this message should be interpreted as a digital or electronic signature that can be used to authenticate a contract or other legal document.

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Carla J. Higginson
Sent: Thursday, July 07, 2022 10:28 AM
To: cole-gilday at stanwoodlaw.net; WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Cc: Garrett J. Beyer <garrett at higginsonbeyer.com>
Subject: Re: [WSBARP] Canadian owner & FIRPTA

My law partner Garrett Beyer is an international tax attorney with much experience in  such matters.  He says that would be happy to talk with you for a few minutes, as a courtesy, so feel free to contact him.

___________________________

Carla J. Higginson, Attorney
Higginson Beyer, P.S.    [cid:image001.png at 01DA18A9.41B2AFA0]
Friday Harbor Office:
175 Second Street North, Friday Harbor, Washington 98250 | Telephone: (360) 378-2185 | Facsimile: (360) 378-3935
Seattle Office:
701 Fifth Avenue, Suite 5500, Seattle, Washington 98104 | Telephone: (206) 623-8888 | Facsimile: (360) 378-3935

carla at higginsonbeyer.com<mailto:carla at higginsonbeyer.com>
HigginsonBeyer.com

*************************************************************************************
CONFIDENTIALITY NOTICE:  The information in this electronic mail is legally privileged and confidential information intended only for the use of the individual or entity named above.  If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copy of the transmission is strictly prohibited.  If you have received this transmission in error, please delete the message and immediately notify us by telephone at (360) 378-2185 or by e-mail.  Internet Communications are not secure and subject to possible data corruption, either accidentally or on purpose, and may contain viruses.  Furthermore, e-mail is an informal method of communication and for these reasons, it will normally be inappropriate to rely on advice contained in an e-mail without obtaining written confirmation of it.  If we receive a request from you via e-mail, we will treat that as authority to reply by e-mail.
*************************************************************************************


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 Robert R. Cole
Sent: Thursday, July 7, 2022 10:16 AM
To: WSBA Probate & Trust Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: [WSBARP] Canadian owner & FIRPTA


Canadian recently inherited real estate in Washington and is now selling it.  With the stepped up basis there will be no capital gains. She (and escrow) needs to know how to comply with FIRPTA.  She has no TIN in USA.
--


Very Truly Yours,
Robert R. Cole
Law Office of Cole & Gilday, P.C.

10101 - 270th St. NW
Stanwood, WA 98292
(360) 629-2900 (Telephone)
(360) 629-0220 (Fax)

This message contains confidential and privileged information that is intended only for the named recipient(s).  Unless you are the named recipient or authorized agent thereof, you are prohibited from reading, copying, distributing or otherwise disseminating such information.  If you receive this communication in error, please notify the sender immediately.

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20231117/09df1246/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 2535 bytes
Desc: image001.png
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20231117/09df1246/image001.png>