Common use of FIRPTA TAX WITHHOLDING Clause in Contracts

FIRPTA TAX WITHHOLDING. If a seller of U.S. real property is a “foreign person” as defined by FIRPTA, 623 Section 1445 of the Internal Revenue Code (“Code”) requires the buyer of the real property to withhold up to 15% 624 of the amount realized by the seller on the transfer and remit the withheld amount to the Internal Revenue Service 625 (IRS) unless an exemption to the required withholding applies or the seller has obtained a Withholding Certificate 626 from the IRS authorizing a reduced amount of withholding. 627 (i) No withholding is required under Section 1445 of the Code if the Seller is not a “foreign person”. Seller can 628 provide proof of non-foreign status to Buyer by delivery of written certification signed under penalties of perjury, 629 stating that Seller is not a foreign person and containing Seller’s name, U.S. taxpayer identification number and 630 home address (or office address, in the case of an entity), as provided for in 26 CFR 1.1445-2(b). Otherwise, Buyer 631 shall withhold the applicable percentage of the amount realized by Seller on the transfer and timely remit said funds 632 to the IRS.

FIRPTA TAX WITHHOLDING. If a seller of U.S. real property is a “foreign person” as defined by FIRPTA, 623 586 Section 1445 of the Internal Revenue Code (“Code”) requires the buyer of the real property to withhold up to 15% 624 587 of the amount realized by the seller on the transfer and remit the withheld amount to the Internal Revenue Service 625 588 (IRS) unless an exemption to the required withholding applies or the seller has obtained a Withholding Certificate 626 589 from the IRS authorizing a reduced amount of withholding. 627 590 (i) No withholding is required under Section 1445 of the Code if the Seller is not a “foreign person”. Seller can 628 591 provide proof of non-foreign status to Buyer by delivery of written certification signed under penalties of perjury, 629 592 stating that Seller is not a foreign person and containing Seller’s name, U.S. taxpayer identification number and 630 STANDARDS FOR REAL ESTATE TRANSACTIONS (“STANDARDS”) CONTINUED 593 home address (or office address, in the case of an entity), as provided for in 26 CFR 1.1445-2(b). Otherwise, Buyer 631 594 shall withhold the applicable percentage of the amount realized by Seller on the transfer and timely remit said funds 632 595 to the IRS.

FIRPTA TAX WITHHOLDING. If a seller of U.S. real property is a “foreign person” as defined by FIRPTA, 623 642 Section 1445 of the Internal Revenue Code (“Code”) requires the buyer of the real property to withhold up to 15% 624 643 of the amount realized by the seller on the transfer and remit the withheld amount to the Internal Revenue Service 625 644 (IRS) unless an exemption to the required withholding applies or the seller has obtained a Withholding Certificate 626 645 from the IRS authorizing a reduced amount of withholding. 627 646 (i) No withholding is required under Section 1445 of the Code if the Seller is not a “foreign person”. Seller can 628 647 provide proof of non-foreign status to Buyer by delivery of written certification signed under penalties of perjury, 629 648 stating that Seller is not a foreign person and containing Seller’s name, U.S. taxpayer identification number and 630 649 home address (or office address, in the case of an entity), as provided for in 26 CFR 1.1445-2(b). Otherwise, Buyer 631 650 shall withhold the applicable percentage of the amount realized by Seller on the transfer and timely remit said funds 632 651 to the IRS.