How to avoid FIRPTA tax? and how to avoid withholding requirement?
Hello, I have foreign clients who own investment real estate in the U.S. They are looking to sell and would be subject to FIRPTA tax. Is there a way to avoid paying this? and is there a way to avoid the withholding requirement?
Keep in mind:
#1) they are doing a 1031 exchange (selling 2 relinquished, and purchasing 1 replacement)
#2) sale price is over $300,000.
#3) it is almost impossible for them to do a simultaneous exchange on the same day.