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Question
What happens when a U.S. real property interest is acquired from a foreign person
AI accountant’s answer:
When a U.S. real property interest is acquired from a foreign person, the Foreign Investment in Real Property Tax Act (FIRPTA) may come into play. FIRPTA requires that the buyer withhold a certain percentage of the purchase price (typically 15%) and submit it to the IRS as a tax withholding. This withholding serves as a way to ensure that any applicable taxes on the foreign person's gain from the sale are paid. To comply with FIRPTA, the buyer must: 1. Determine if the seller is a foreign person, which generally includes nonresident alien individuals, foreign corporations, foreign partnerships, foreign trusts, and foreign estates. 2. If the seller is a foreign person, withhold 15% of the amount realized on the disposition, which usually means 15% of the gross sales price. 3. File IRS Form 8288, "U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests," and Form 8288-A, "Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests," to report the withholding and transmit the withheld amount to the IRS. These forms must be filed and the taxes paid within 20 days of the transfer date. Note that there are specific exemptions, reduced rates, or other circumstances where the FIRPTA withholding requirements may not apply or may be adjusted. If you believe any of these exceptions apply, it's important to research the specific rules and consult with a tax professional to ensure compliance.
Comment from reviewer
Judah Broussard, EA, JD
Not Correct.
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Keeper’s AI Accountant

This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

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Ask an AI Accountant

A free tool by

Question
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AI accountant’s answer:

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Comment from reviewer
This is some text inside of a div block.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Not Correct.
Icon check
Looks good

Keeper’s AI Accountant

This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

Find write-offs.
File taxes.

Keeper helps independent contractors and freelancers discover tax deductions and file taxes.

Get started