Exchanges of U.S. Property owned by Nonresidents
“Foreign National” is defined to include: a nonresident alien individual, a foreign corporation, foreign partnership, foreign trust or foreign estate.
Foreign Nationals can exchange properties under Section 1031 as long as the properties involved are within the U.S. or in a U.S. territory. An exchange can save the Foreign National the required 10% withholding tax.
The buyer of the U.S. property [from the Foreign National] is responsible for withholding 10% of the Foreign Nationals proceeds from their sale. As an Intermediary, we will file for a withholding certificate from the IRS on behalf of the Foreign National. Once the approved withholding certificate is provided to the buyer, they can release the tax to the Qualified Intermediary.
Without the withholding certificate, the buyer of the U.S. property must remit the 10% withholding tax to the IRS.
Is this Exchange Right for Me?
If you are a foreign national selling U.S. investment property and you plan to purchase additional U.S. investment property, this exchange is right for you.
How to Get Started
Call our office at (513) 412-3481 or toll free at: (800) 427-7212. Our exchange coordinators are ready to discuss whether this type of exchange is right for you and how to get started. You may want to have your project details handy when we discuss your potential Foreign National Exchange.
Click here to receive information on this Exchange
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