Reno Home Buyers: Who Is Responsible for FIRPTA Withholding?

Under FIRPTA, Internal Revenue Code section 1445, a buyer acquiring a U.S. real property interest from a foreign person is generally responsible for withholding 15% of the amount realized. The amount realized is not simply the seller’s profit or estimated taxable gain; it generally includes cash paid, the fair market value of other property transferred and liabilities assumed or taken subject to.

For a simple illustration, a $600,000 sale × 15% = $90,000 of withholding when the general rate applies. That is a withholding calculation, not a statement of the seller’s final income tax. See the IRS FIRPTA withholding guidance and Instructions for Forms 8288 and 8288-A.

如果 Reno 或 Sparks 房屋的賣方依美國聯邦稅法屬於外國人士，買方通常是 FIRPTA 預扣義務人。一般預扣額為成交「amount realized」的 15%，通常以總成交價為起點，而不是賣方利潤。例：$600,000 × 15% = $90,000。這是預扣款，不一定等於賣方最後的所得稅。

The reduced residence treatment depends on the buyer’s intended use and the transaction facts. For the residence exception, the buyer must be an individual and the buyer or a family member must have definite plans to reside at the property for at least 50% of the days it is used by any person during each of the first two 12-month periods after transfer; vacant days are not counted. Confirm the rule with the closing and tax professionals before relying on a reduced rate.

Read the IRS exceptions from FIRPTA withholding. Buying property from a foreign seller requires transaction-specific verification; price alone does not establish an exemption.

The buyer is generally responsible for collecting and paying over the required amount. IRS instructions warn that if required withholding is not collected, the tax and interest may be collected from the buyer; additional penalties can apply. A title or escrow company may administer the closing, but the parties should not assume that delegation changes the federal withholding-agent rule.

Before the Reno real estate closing, verify the seller’s federal tax status, any non-foreign certification, ownership structure, allocation among multiple owners and the exact exception being claimed. Entity ownership, trusts, joint ownership, nonrecognition claims and other facts can change the analysis. A Chinese-speaking REALTOR® in Reno can help organize communication and document requests, but cannot determine federal tax residency or give tax or legal advice.

買方通常須負責預扣與申報；若依法應預扣卻未辦理，IRS 可能向買方追收稅款、利息及相關罰則。產權或 escrow 公司可以協助執行交割，但不能只因有承辦公司就假設買方責任已消失。應由合格 CPA 或稅務律師查核賣方稅務居民身分、持有架構、證明文件及適用例外。

A foreign seller—or in some cases the buyer—may use Form 8288-B to request an IRS withholding certificate that reduces or eliminates withholding when the legal requirements are met. Filing the application does not itself authorize the buyer to skip withholding at closing.

The IRS Form 8288 instructions state that withholding must occur even when an application is pending. The filing and remittance deadline may be postponed until the 20th day after the IRS mails the certificate or denial. If the IRS issues a certificate that reduces rather than eliminates withholding, Form 8288 is still required with a copy of the certificate. Review the IRS Form 8288-B page and current form.

Withholding is generally a prepayment credited on the foreign seller’s U.S. return; it is not necessarily the final tax. The seller should obtain individualized advice about basis, gain, return filing and any refund or balance due.

Official sources checked October 30, 2026:

• IRS — FIRPTA withholding
• IRS — Exceptions from FIRPTA withholding
• IRS — Instructions for Forms 8288 and 8288-A
• IRS — Form 8288-B and current revision

General educational information only. Not individualized tax or legal advice. Consult a qualified CPA or tax attorney. MingChi Huang provides Nevada real estate brokerage services and does not determine tax residency, prepare FIRPTA forms or guarantee an exception, certificate or tax result.