Can FIRPTA withholding ever be reduced with proper documentation for a 30A sale?

Yes. FIRPTA withholding can sometimes be reduced with proper documentation. Foreign sellers are often subject to 15 percent withholding at closing, but that amount may be higher than their actual United States tax liability.

By filing IRS Form 8288 B before closing, a seller may request a reduced withholding amount based on the expected gain from the sale. Supporting documents can include the purchase price, improvement costs, selling expenses, contract details, and estimated tax calculations.

For a 30A sale, Kelsey Hampton helps foreign sellers address FIRPTA early, coordinate with the right title and tax professionals, and keep the transaction moving smoothly.