Finance

Under FIRPTA, what is the standard withholding rate on the gross sales price when a foreign seller sells U.S. real property?

AA. 5%
BB. 10%
CC. 15%✓ Correct
DD. 20%

Explanation

The standard FIRPTA withholding rate is 15% of the gross sales price. A reduced 10% rate may apply if the buyer intends to use the property as a residence and the price is $1 million or less.

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