FIRPTA – Capital Improvements That Increase Your Adjusted Basis

Under the Foreign Investment in Real Property Tax Act ("FIRPTA"), a person or entity purchasing a U.S. real property interest from a foreign person is required to withhold ten percent (10%) of the amount realized upon sale (gross sale price) from a foreign owner such as a Canadian.  I.R.C. § 1445 What that means, in effect, is [...]