FIRPTA withholding for TN visa holder

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
bvadrich
Posts: 3
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: 18311
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. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
ND
Posts: 291
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)
Post Reply