FIRPTA AGENT BOOK

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A GUIDE TO BUYING AND SELLING
REAL PROPERTY IN THE UNITED STATES

AN INDUSTRY LEADER

FIRPTA

When does this apply?

Anytime the seller is a foreign person, foreign entity or nonresident alien. This
includes any domestic entity owned by a foreign person or foreign entity.

The only exception:

If the sales price is 300,000.00 or less AND the buyer or a relative of the buyer
will be living in the property for 50% of the time the property is occupied over
the next 24 months, there is an exception.
(If the buyer does not plan to rent out the property)

** When this applies the responsibility of the buyer and seller
are as follows:

1 - Buyer must sign the FIRPTA occupancy affidavit. Buyer must be an individual.
2 - Seller must be informed that a 1099 form will be submitted to the IRS. They
need to apply for a TIN (if they don’t have one) and send it to us when received
using form W8.

How much do we withhold?

Seller(s) is an individual

**Buyer has signed the occupancy agreement:

Sales Price is…

300,000.00 Or less 00%

300,001.00 Up to 1,000,000.00 10%

1,000,000.00 Or more 15%

**Buyer is an investor

Any Sales Price 15%

Seller is a foreign entity of any type:

**Buyer has signed the occupancy agreement:

Sales Price is…

300,000.00 Or less 00%

300,001.00 Or more 35%

**Buyer is an investor

Any Sales Price 35%

What does the Seller need?

**Seller needs to contact a FIRPTA accountant**

Each Seller must have an ITIN regardless of marital status.
**If the Seller has an ITIN

They will each need to complete form W8 for reporting their ITIN.
**If the Seller does not have an ITIN.

The Seller’s accountant will complete their application for an ITIN. There are many
variables in the application and it’s important for the seller that is handled correctly. They
need to deliver to us a copy of the application form W-7 (for easier refund) and the account
will submit that to the IRS. We will submit this package on their behalf if requested but we
will not complete or instruct them on how to complete the package or what is needed.

Each Seller must sign the authorization to withhold document and the FIRPTA instructions
for the escrow file.

What do we need from the Buyer?

1 Buyer signed FIRPTA instruction form.
2 Buyer signed occupancy affidavit, if applicable.
3 Completed 8288

Part one is to be filled out if the buyer is an individual. Part two is to be filled out if the
buyer is an entity. Make sure all fields are filled in and the document is signed.
4 Completed form 8288-A (copies a, b and c) one must be completed for each seller with
their %.

What does the Seller do now?

When the IRS receives the payment and the above forms, they will do one
of two things.

If the Seller has an ITIN –
The IRS will stamp copy B and send to the seller shown on each 8288-A.
The seller will need these when applying for their refund.

If the Seller does not have an ITIN –
The IRS will send a letter to the seller shown on each 8288-A with
instructions on what to do when they receive their ITIN. When the sellers send
their ITIN to the IRS they will at that time stamp copy B (The IRS will black out
the buyers SS# for privacy) and send to the seller shown on each 8288-A.

The Seller should work with their FIRPTA accountant to apply for the refund.
Good news is that they do not need to wait for tax period to end. Once they
receive the stamped 8288-A copy b from the IRS, they can apply for an early
refund. This will normally take between 3 or months.

















BRANCH LOCATIONS

Ahwatukee Arrowhead Camelback Commercial Dana Center
4505 E. Chandler Blvd., Suite 120 17505 N. 79th Ave., Suite 112 4808 N. 22nd St., Suite 100 3303 E. Baseline Rd., Bldg. 5, Suite 111

Phoenix, AZ 85048 Glendale, AZ 85308 Phoenix, AZ 85016 Gilbert, AZ 85234
Phone: (602) 749-7120 Phone: (602) 749-7131 Phone: (602) 749-7000 Phone: (602) 749-7050

Default Services Flagstaff Gilbert Goodyear
4808 N. 22nd St., Suite 100 403 N. Agassiz St., Suite 3 3303 E. Baseline Rd., Bldg. 5, Suite 111 1616 N. Litchfield Rd., Suite 260

Phoenix, AZ 85016 Flagstaff, AZ 86001 Gilbert, AZ 85234 Goodyear, AZ 85395
Phone: (602) 749-7000 Phone: (928) 774-3351 Phone: (602) 749-7170 Phone: (602) 749-7130

Hayden Park Main Escrow Maricopa Mesa
10611 N. Hayden Rd., Suite D104 4808 N. 22nd St., Suite 100 19756 N. John Wayne Pkwy., Suite 100 6642 E. Baseline Rd., Suite 104

Scottsdale, AZ 85260 Phoenix, AZ 85016 Maricopa, AZ 85139 Mesa, AZ 85206
Phone: (602) 749-7080 Phone: (602) 749-7000 Phone: (520) 233-2244 Phone: (602) 749-7180

North Central Prescott Raintree San Tan
5225 N. Central Ave., Suite 103 600 W. Gurley St., Suite 100 4808 N. 22nd St., Suite 100 21321 E. Ocotillo Rd., Suite 105

Phoenix AZ 85012 Prescott, AZ 86305 Phoenix, AZ 85016 Queen Creek, AZ 85142
Phone: (602) 749-7143 Phone: (928) 778-5044 Phone: (602) 749-7152 Phone: (602) 749-7060

Scottsdale Ventura Sedona Surprise Tempe (Broadway)
8777 E. Via de Ventura, Suite 399 3000 W. State Route 89A 14239 W. Bell Rd., Suite 209 2151 E. Broadway Rd., Suite 116

Scottsdale, AZ 85258 Sedona, AZ 86336 Surprise, AZ 85374 Tempe, AZ 85282
Phone: (602) 749-7030 Phone: (928) 282-0280 Phone: (602) 749-7110 Phone: (602) 749-7160

Val Vista
225 E. Germann Rd., Suite 170

Gilbert, AZ 85297
Phone: (602) 749-7100

CORPORATE HEADQUARTERS
4808 N. 22nd Street, Suite 100 | Phoenix, AZ 85016 | Phone: (602) 749-7000