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.
FIRPTA withholding for TN visa holder
Moderator: Mark T Serbinski CA CPA
Re: FIRPTA withholding for TN visa holder
Yes, you would.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: FIRPTA withholding for TN visa holder
"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)
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)