Escrow & Title
In Montana, a FIRPTA withholding may apply when:
AA Montana resident sells property to a foreign buyer
BA foreign person sells U.S. real property, requiring the buyer to withhold 15% of the amount realized for IRS purposes✓ Correct
CA Montana LLC sells commercial property
DProperty is sold at a loss
Explanation
The Foreign Investment in Real Property Tax Act (FIRPTA) requires buyers to withhold 15% of the amount realized when purchasing U.S.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Math Concepts
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