Home
Forms Library
Withholding Requirements for Sales or Transfers of Real Property by ...

Withholding Requirements for Sales or Transfers of Real Property by ... 2025

Withholding Requirements for Sales or Transfers of Real Property by ... Preview on Page 1

Show details

4.3 out of 5

28 votes

The document outlines the income tax withholding requirements for sales or transfers of real property by nonresidents in Alabama, as stipulated in Code of Alabama 1975, Section 40-18-86. It details the applicable withholding rates (3% or 4%), exemptions for certain transactions and entities, and the responsibilities of buyers and sellers regarding documentation and tax remittance. The document also includes definitions, frequently asked questions, and forms necessary for compliance with these regulations.

Here's how it works

01. Edit your form online

Type text, add images, blackout confidential details, add comments, highlights and more.

02. Sign it in a few clicks

Draw your signature, type it, upload its image, or use your mobile device as a signature pad.

03. Share your form with others

Send it via email, link, or fax. You can also download it, export it or print it out.

How to modify Withholding Requirements for Sales or Transfers of Real Property by ... in PDF format online

Ease of Setup

DocHub User Ratings on G2

Ease of Use

DocHub User Ratings on G2

Adjusting documents with our comprehensive and user-friendly PDF editor is straightforward. Adhere to the instructions below to complete Withholding Requirements for Sales or Transfers of Real Property by ... online easily and quickly:

Log in to your account. Sign up with your email and password or create a free account to test the product prior to upgrading the subscription.
Import a form. Drag and drop the file from your device or import it from other services, like Google Drive, OneDrive, Dropbox, or an external link.
Edit Withholding Requirements for Sales or Transfers of Real Property by .... Easily add and highlight text, insert images, checkmarks, and icons, drop new fillable areas, and rearrange or remove pages from your document.
Get the Withholding Requirements for Sales or Transfers of Real Property by ... completed. Download your updated document, export it to the cloud, print it from the editor, or share it with other people through a Shareable link or as an email attachment.

Make the most of DocHub, one of the most easy-to-use editors to promptly manage your paperwork online!

See more Withholding Requirements for Sales or Transfers of Real Property by ... versions

We've got more versions of the Withholding Requirements for Sales or Transfers of Real Property by ... form. Select the right Withholding Requirements for Sales or Transfers of Real Property by ... version from the list and start editing it straight away!

Versions	Form popularity	Fillable & printable
2014	4.3 Satisfied (28 Votes)
2010	4.2 Satisfied (34 Votes)

be ready to get more

Complete this form in 5 minutes or less

Get form

Got questions?

We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

What is the withholding tax on property sales in the US?

US law requires that the transferee (buyer) on a sale or disposition of a United States Real Property Interest withhold a percentage (typically 15%) of the total amount realized (the sales price) at the time of disposition (closing of sale).

Who is subject to 30% withholding?

All persons (withholding agents) making US-source fixed, determinable, annual, or periodical (FDAP) payments to foreign persons generally must report and withhold 30% of the gross US-source FDAP payments, such as dividends, interest, royalties, etc.

What is the federal withholding tax on the sale of real property?

The standard withholding is 3.33% of the Sales Price. Sellers can pay more, but not less unless they take advantage of Part VI and request an Alternative Amount, like 12.3% on the gain amount for an individual or 8.84% or 13.8% for a corporation, depending on the type of corporation.

Why is 15% tax required for foreigners when selling a home?

The Foreign Investment in Real Property Tax Act FIRPTA FIRPTA was enacted in 1980 to help ensure foreign nationals who may not have other U.S. assets or economic ties pay capital gains taxes on their profits from any real estate transactions.

What is the FIRPTA withholding requirement?

Amount of FIRPTA withholding If FIRPTA withholding is required, the buyer generally must withhold 15% the total amount realized by the seller. The amount realized is equal to the total of: cash paid, or to be paid (principal only) the fair market value of other transferred property, or property to be transferred.

What is the withholding rate for Section 1445?

To the extent provided in regulations, the transferee of a partnership interest or of a beneficial interest in a trust or estate shall be required to deduct and withhold under subsection (a) a tax equal to 15 percent of the amount realized on the disposition.

Is FIRPTA withholding under $300000?

If the sale price is $300,000 or less Properties bought and sold for no more than $300,000 do not require a FIRPTA withholding, as long as the buyer or a member of the buyers family intends to live at the property for at least half of the first two years after the purchase.

Is FIRPTA 10% or 15%?

A domestic corporation must withhold a tax equal to 15% of the fair market value of the property distributed to a foreign person if: The shareholders interest in the corporation is a U.S. real property interest, and. The property distributed is either in redemption of stock or in liquidation of the corporation.

Withholding Requirements for Sales or Transfers of Real Property by ... 2025

Here's how it works

How to modify Withholding Requirements for Sales or Transfers of Real Property by ... in PDF format online

See more Withholding Requirements for Sales or Transfers of Real Property by ... versions

Complete this form in 5 minutes or less

Got questions?

What is the withholding tax on property sales in the US?

Who is subject to 30% withholding?

What is the federal withholding tax on the sale of real property?

Why is 15% tax required for foreigners when selling a home?

What is the FIRPTA withholding requirement?

People also ask

What is the withholding rate for Section 1445?

Is FIRPTA withholding under $300000?

Is FIRPTA 10% or 15%?

Related links

Try more PDF tools

Withholding Requirements for Sales or Transfers of Real Property by ... 2025

Here's how it works

How to modify Withholding Requirements for Sales or Transfers of Real Property by ... in PDF format online

See more Withholding Requirements for Sales or Transfers of Real Property by ... versions

Complete this form in 5 minutes or less

Got questions?

What is the withholding tax on property sales in the US?

Who is subject to 30% withholding?

What is the federal withholding tax on the sale of real property?

Why is 15% tax required for foreigners when selling a home?

What is the FIRPTA withholding requirement?

Related Searches

People also ask

What is the withholding rate for Section 1445?

Is FIRPTA withholding under $300000?

Is FIRPTA 10% or 15%?

Related links

Try more PDF tools