FIRPTA withholding for TN visa holder

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bvadrich
Posts: 2
Joined: Sat Dec 12, 2020 1:55 pm

FIRPTA withholding for TN visa holder

Post by bvadrich »

Hello,

I am a Canadian citizen on a TN visa. I work for a California company. I am trying to sell my house. I paid US taxes in 2018 and 2019. I have an SSN.

Suppose, I leave the US (but continue working for the California company), and therefore cannot pass the substantial presence test in 2021. Then my house sells, also in 2021. Would I be subject to the FIRPTA withholding?

Thank you. If more details are needed, please let me know.
nelsona
Posts: 16655
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: FIRPTA withholding for TN visa holder

Post by nelsona »

Yes, you would.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
ND
Posts: 173
Joined: Thu Feb 21, 2013 5:28 pm

Re: FIRPTA withholding for TN visa holder

Post by ND »

"Suppose, I leave the US (but continue working for the California company)"
You need your whole house in order and entirely consistent.

FIRPTA and other w/h is for NRA who otherwise wouldn't be reporting income tax to IRS on an income tax return. I suspect that for the sale of your house since you cannot sign an affidavit that you're a "US person', you'll pay FIRPTA and that you're staying with a W-2 and reporting a 1040 as if you were still in the USA. See, why that doesn't work out well? True 1040 filers aren't subject to FIRPTA since they report the gain/loss on the 1040.

Also, be aware that CA (and many other states) have their own form of FIRPTA w/h on real property sale (and often do not offer the exemptions IRS does)
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