Escrow & Title

What is 'FIRPTA' and when does it apply to Kansas real estate transactions?

AA Kansas state tax on real estate sales
BThe Foreign Investment in Real Property Tax Act; requires withholding of a percentage of the sales price when a foreign person sells U.S. real property, including Kansas properties✓ Correct
CA federal program for first-time buyer assistance
DA recording fee for foreign-owned properties

Explanation

FIRPTA requires buyers of U.S. real estate from foreign sellers to withhold 15% of the gross sales price and remit it to the IRS. This applies to Kansas property sales when the seller is a foreign person or entity.

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