ALTA® Alert: " News Flash: Pile-Up on the I-Tin"

May 19, 2004

ALTA is pleased to provide this summary of the requirements of the Foreign Investment in Real Property Tax Act (FIRPTA). In general, FIRPTA provides that any person who acquires a U.S. real property interest from a foreign person must withhold a tax of 10 percent from the amount realized by the transferor foreign person (or a lesser amount established by agreement with the Internal Revenue Service). Federal regulations provide special rules requiring withholding on distributions and certain other transactions by corporations, partnerships, trusts, and estates. This presentation was first presented at the 40 th Annual Fund Assembly Conference held in May 2004 sponsored by Attorneys’ Title Insurance Fund, Inc. of Orlando, Fl. This paper provides general information on the requirements of the Internal Revenue Code and does not constitute legal advice.