What is the Role of Foreign Investment in Real Property Tax Act?

Luisjoseycaza28 Oct, 2020Legal

The Foreign Investment Real property Tax Act is a law executed in 1980 and adds that if the seller of real estate situated in the US is a foreign person, the buyer must deduct a tax equal to 10 % of the gross purchase price even in cases when no tax is owned. A foreign individual is a non resident person, a foreign corporation not considered as a domestic corporation, or a foreign partnership, trust or estate.