Realized 1031 Glossary of Terms

Foreign Investment in Real Property Tax Act (FIRPTA)

Written by The Realized Team | Jun 29, 2022 12:00:00 PM

Foreign Investment in Real Property Tax Act (FIRPTA) is a United States tax law that imposes a tax on foreign persons disposing of United States real property interests. To ensure tax collection from foreign taxpayers, FIRPTA requires buyers of U.S. real property interests to withhold 10% of the sales price and remit the withholding directly to the IRS.