Exceptions to Taxable Real Estate Transactions for Foreign Persons

The most common exceptions are as follows: 

  1. Buyer acquires the property for use as a home and the sales price is not more than $300,000;
  2. Seller provides a certification stating under penalty of perjury that they are not a foreign person;
  3. Seller obtains a withholding certificate from the IRS that excuses the withholding;
  4. Seller provides the buyer a notice of non-recognition stating that no recognition of gain or loss on the transfer is required because of a provisions in the IRC Code or U.S. tax treaty; or
  5. Amount the seller realizes from the disposition is zero.