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Print Form STATE OF NORTH CAROLINA FOREIGN AFFIDAVIT (FIR PTA AFFIDAVIT) COUNTY OF The UNDERSIGNED, BEING FIRST DULY SWORN, DEPOSES AND SAYS THAT: 1. This Nonforeign Affidavit is given by Seller pursuant

How to fill out firpta affidavit form

How to fill out the FIRPTA affidavit form:

1. Obtain the form: Start by obtaining the FIRPTA affidavit form from the Internal Revenue Service (IRS) website or through other reliable sources.
2. Read the instructions: Carefully read the instructions provided with the form. This will help you understand the purpose of the form and the information you need to provide.
3. Identify the seller: Fill in the seller's name, address, and taxpayer identification number (usually a Social Security Number or an Employer Identification Number).
4. Describe the property: Provide a detailed description of the property being sold, including the address, legal description, and any other relevant details.
5. Calculate the withholding amount: Determine the withholding amount based on the sales price and any exemptions or reductions allowed under FIRPTA regulations. Consult with a tax professional if needed.
6. Complete the certification: Sign the FIRPTA affidavit form, certifying that all the information provided is true and accurate.
7. Attach required documents: Attach any supporting documentation required by the IRS, such as sales contracts, settlement statements, or other relevant forms.
8. Submit the form: Send the completed FIRPTA affidavit form along with any attachments to the appropriate party, such as the closing agent, the buyer's attorney, or the IRS, as specified in the instructions.

Who needs the FIRPTA affidavit form:

1. Non-U.S. persons selling U.S. real property interests: The FIRPTA affidavit form is primarily required for non-U.S. persons or entities selling U.S. real property interests.
2. Withholding agents: The withholding agent or the purchaser of the property is responsible for ensuring that the FIRPTA affidavit form is completed and submitted to the IRS.
3. Escrow agents and closing agents: Escrow agents and closing agents often assist in the completion and submission of the FIRPTA affidavit form during real estate transactions involving non-U.S. sellers.

Note: It is crucial to consult with a tax professional or attorney familiar with FIRPTA regulations to ensure compliance with the law and proper completion of the form.

For pdfFiller’s FAQs

What is firpta affidavit form?

The FIRPTA Affidavit form refers to the Foreign Investment in Real Property Tax Act (FIRPTA) Affidavit. FIRPTA is a U.S. tax law that requires foreign individuals or entities to pay taxes on gains they make from the sale, exchange, or disposition of U.S. real property interests. The FIRPTA Affidavit is a document that the buyer is required to complete and submit to the Internal Revenue Service (IRS) to ensure that they comply with FIRPTA requirements. It includes information about the buyer, seller, and property involved in the transaction.

Who is required to file firpta affidavit form?

The Foreign Investment in Real Property Tax Act (FIRPTA) affidavit form should be filed by the transferee (buyer) of a U.S. real property interest from a foreign person. It is the buyer's responsibility to withhold a certain percentage of the purchase price and submit the FIRPTA affidavit form to the IRS.

How to fill out firpta affidavit form?

To fill out a FIRPTA affidavit form, follow these steps: 1. Obtain the firpta affidavit form: You can get the form from the Internal Revenue Service (IRS) website or from your real estate agent or escrow company. Ensure that you have the most current version of the form. 2. Read the instructions: Go through the instructions provided with the form, as they will guide you on how to properly fill it out. 3. Identify the seller and property: Fill in the seller's name, address, and taxpayer identification number (TIN). Provide the address of the property being sold. 4. Indicate whether the seller is a foreign person: Tick the box that corresponds to the seller's residency status. If the seller is not a U.S. citizen or resident alien, they are considered a foreign person for FIRPTA purposes. 5. Determine the maximum amount of withholding required: If the sale price of the property exceeds $300,000, the withholding amount is typically 15% of the sales price. If the sale price is less than $300,000, you will need to consult the instructions for the exact withholding percentage. 6. Calculate the actual amount of withholding: Depending on the transaction, the actual amount of withholding required may be different from the maximum withholding amount. Use the provided formula or consult with a tax professional to calculate the accurate withholding amount. 7. Provide the buyer's information: Enter the buyer's name, address, and TIN in the designated fields. 8. Signature and certification: Sign and date the FIRPTA affidavit form to certify that the information provided is true, correct, and complete to the best of your knowledge. If you are filing on behalf of the seller, ensure you have the appropriate legal authority to do so. 9. Submit the form: Provide the completed and signed form to the appropriate party, such as the closing agent, escrow company, or title company, for processing and inclusion in the transaction documentation. It's crucial to note that the form is complex, and FIRPTA withholding requirements vary depending on individual circumstances. If you are unsure about how to correctly fill out the form or need specific guidance, consult with a tax professional or attorney specializing in FIRPTA transactions.

What is the purpose of firpta affidavit form?

The purpose of the FIRPTA affidavit form (Foreign Investment in Real Property Tax Act) is to ensure that the seller of a U.S. real property interest is in compliance with the tax laws related to foreign investment. This form is typically required during the sale of real estate by a foreign person or entity, and it declares that the seller is not subject to withholding taxes under the FIRPTA rules. By signing the affidavit, the seller certifies their eligibility for an exemption or reduction in withholding tax on the sale proceeds.

What information must be reported on firpta affidavit form?

The Foreign Investment in Real Property Tax Act (FIRPTA) affidavit form, also known as IRS form 8288-B, is used to report important information related to the disposition of a U.S. real property interest by a foreign person. The information that must be reported on the FIRPTA affidavit form includes: 1. Identification of the transferee (buyer) and transferor (seller) 2. Description of the property being transferred, including the address and legal description 3. Date of the transfer and the total amount realized from the disposition 4. Calculation of the transferor's maximum tax liability under FIRPTA 5. Certification that the transferor is a foreign person and that the transferor has not previously provided a certification regarding the transferor's foreign status with respect to another disposition 6. Declaration of the transferor's U.S. taxpayer identification number (TIN) if applicable 7. Declaration of any exemptions or reduced withholding based on applicable tax treaties or a like-kind exchange 8. Declaration of any foreign government's certification of exemption from taxes on the disposition 9. Declaration regarding special rules for certain corporations, partnerships, trusts, and estates 10. Certification that the transferee is the withholding agent responsible for withholding the required amount and that the withholding agent is willing and able to assume primary liability for the tax 11. Signatures of the transferor, transferee, and withholding agent It is important to note that the FIRPTA affidavit form is complex, and it is recommended to seek professional advice or consult the instructions provided by the IRS while completing the form.

What is the penalty for the late filing of firpta affidavit form?

The penalty for late filing of the FIRPTA (Foreign Investment in Real Property Tax Act) affidavit form depends on the specific circumstances and the discretion of the Internal Revenue Service (IRS). However, generally, the penalty for late filing can range from $10,000 to $25,000. It is important to consult with a tax professional or seek guidance from the IRS for specific details and consequences related to late filing of FIRPTA affidavit forms.

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