Consultation for Non –US Residents and Green Card Holder in Florida
Consultation for Non –US Residents and Green Card Holder in Florida: Owning a Vacation Home in Florida – Whether purchasing, selling, renting or personal use
We are here to assist you with all your U.S. tax matters. Our initial consultation is with no charge to you. We will prepare all the necessary applications and tax returns for you.
Green Card – what are my tax obligations?
As a green card holder you will face a variety of tax regulations and reporting requirements to be in compliances with the US tax law. Non-observance of those requirements can lead to very high penalties. We advise you in detail what is important in your individual case. Our initial consultation is free of charge. We will prepare all required tax returns and reports for you.
Owning a business in the US
We are here for you to offer our complete range of services you or your company may need. Our services go far beyond than just preparing your bookkeeping, payroll, financial statements and tax returns.
We are available for this purpose to offer detailed advice.
Please call or Email for an appointment for a no-obligation free initial consultation.
Our pricing is clear and reasonable.
Withholding Tax on Real Estate Sales as Non-US resident
As a Non-US resident – if you are selling US Property you are subject to a 10% Withholding TAX (FIRPTA) deducted from the selling price of the property and payable to the US tax agency.
The withholding Tax is used to cover capital gain tax resulting from the sale of the property.
The title company handles the settlement of the sale and is taking care of withholding and payment of the tax. However, the buyer of the property has the ultimate responsibility for withholding and payment of the tax. The tax payment must be made by the 20th day after the closing. If the tax payment is delayed significant penalties will apply.
In order to issue the tax payment to the tax agency it is very important that the seller of the property has a US Taxpayer ID number (ITIN) or that a US Taxpayer ID application will be filed.
If the purchaser of the property is not a US resident he will need a US Taxpayer ID number as well.
The Withholding Tax can be avoided if the selling price of the property does not exceed $ 300,000 and the purchaser of the property is willing to sign a “buyers’ affidavit”. However the buyer is subject to certain conditions in order to sign the “buyers’ affidavit”.
The withholding tax can be reduced if an application for a “Withholding Certificate” is submitted to the tax agency on or before the date of the property transfer. With his application the expected gain of loss on the sale of the property will be reported to the tax agency. According to the expected gain the tax payable will be stated. In case of a loss no tax will be due.
At closing the title company will retain the 10% Withholding Tax. As soon as the tax agency issues the Withholding Certificate the title company can release the overstated amount of Withholding Tax to the seller and only the tax due will be paid to the tax agency.
If you intend to sell your property, please contact Davis & Associates for a detailed consultation. As a customer of Davis & Associates for many years it is my pleasure to recommend the services provided by Davis & Associates. Please find below their contact information for more Information.
Naples Waterfront Real Estate
Davis & Associates
Fluent in English and German
400 5th Ave S, Suite 301
Naples, Florida 34102
Bonita Springs: 28901 Trails Edge Blvd. # 205, Phone: 239-444-5945
Fort Myers: 6350 Presidential Court # 205, Phone: 239-432-0811
Cape Coral: 1402 Cape Coral Pkwy E., Phone: 239-945-4939
Port Charlotte: 2286 Tamiami Trail # 10, Phone: 941-258-3191
Davis & Associates, CPA’s . . .
Planning, Counsel, Peace of Mind – Consultation for Non –US Residents and Green Card Holder in Florida
DAVIS & ASSOCIATES
Certified Public Accountants