FIRPTA Tax Assistance
Foreign seller tax specialist in Miami Beach. Reduce or eliminate the 15% withholding requirement through Form 8288-B processing. David L. Wrubel, CPA has guided international investors through FIRPTA compliance since 2001.
FIRPTA (26 U.S.C. Section 1445) requires buyers of U.S. real property from foreign persons to withhold 15% of the gross sales price on transactions over $1,000,000 and remit it to the IRS. Foreign sellers can reduce this withholding to their actual tax liability by filing Form 8288-B (Withholding Certificate Application) at least 90 days before closing. In Miami Beach, where most luxury transactions exceed $1M, this process routinely releases hundreds of thousands of dollars in capital at closing. David L. Wrubel, CPA, PA (Florida License AD0020086) specializes in Form 8288-B applications for foreign sellers in Miami Beach, Star Island, South of Fifth, and the Venetian Islands.
What Is FIRPTA? 15% Withholding Reduction for Foreign Sellers
As a dedicated foreign seller tax specialist in Miami Beach, David L. Wrubel, CPA provides comprehensive FIRPTA compliance and 15% withholding reduction services. The standard 15% withholding rate on luxury transactions can be substantially reduced through a properly prepared Form 8288-B withholding certificate application filed with the IRS before closing.
The Foreign Investment in Real Property Tax Act (FIRPTA), enacted in 1980 and significantly amended in 2015, requires buyers of U.S. real property from foreign persons to withhold a portion of the sales price and remit it to the IRS. This withholding mechanism ensures the U.S. government collects taxes on capital gains realized by foreign sellers who might otherwise have no U.S. tax presence.
For Miami Beach's international real estate market - where properties on Star Island, South of Fifth, and along the waterfront routinely transact at $5M–$50M+ - the standard 15% withholding can represent millions of dollars in capital locked with the IRS for months or years. Our firm specializes in minimizing this burden through proactive Form 8288-B applications.
Form 8288-B applications must be filed before or at closing to be effective. The IRS requires 90+ days to process. Engage our firm immediately upon listing your property.
| Sales Price | Withholding Rate | Condition |
|---|---|---|
| $300,000 or less | 0% | Buyer uses as primary residence |
| $300,001 – $1,000,000 | 10% | Buyer uses as primary residence |
| Over $1,000,000 | 15% | All transactions (standard Miami Beach rate) |
| Any amount | Reduced / 0% | With approved Form 8288-B withholding certificate |
* The 15% rate applies to virtually all Miami Beach luxury transactions. Form 8288-B can reduce withholding to the actual anticipated tax liability.
Per IRC Section 1445(a), any person who acquires a U.S. real property interest from a foreign person must withhold and deduct a tax equal to 15% of the amount realized. The obligation is the buyer's, not the seller's, and failure to withhold exposes the buyer to IRS liability.
Per Treas. Reg. 1.1445-3(b), the IRS will issue a withholding certificate reducing the amount withheld to the transferor's maximum tax liability on the gain. The application (Form 8288-B) must be filed before or at the time of closing to be effective for that transaction.
Per IRS Notice 2018-29 and IRC Section 1446(f), when a foreign partner disposes of an interest in a partnership that holds U.S. real property, the transferee must withhold 10% of the amount realized. This rule applies to foreign investors holding Miami Beach real estate through partnership structures.
Foreign Seller Tax Withholding in Miami Beach: The Form 8288-B Reduction Process
Engage Our Firm Early
Contact us immediately upon listing your property. Form 8288-B applications require IRS processing time of 90 days or more. Early engagement is critical.
ITIN Application (if needed)
Foreign sellers without a U.S. Individual Taxpayer Identification Number (ITIN) must apply via Form W-7. We handle the full ITIN application process.
Prepare Form 8288-B
We calculate your actual anticipated tax liability on the gain and prepare the withholding certificate application, supporting the case for a reduced withholding amount.
IRS Submission & Tracking
We submit the application to the IRS and track its status. Upon approval, the IRS issues a withholding certificate specifying the reduced amount.
Closing Coordination
We coordinate with your closing attorney and title company to ensure the withholding certificate is honored at closing, releasing the maximum possible proceeds to you.
Tax Return Filing
After closing, we prepare your U.S. non-resident income tax return (Form 1040-NR) to reconcile the final tax liability and recover any remaining withheld funds.
Foreign Seller Tax Withholding Services in Miami Beach
International Property Sellers Served Across Miami Beach
Miami Beach is, as David Wrubel describes it, "a big melting pot like New York - but with Sun." Our firm's international client base reflects the extraordinary cultural and geographic diversity of the global investors who have chosen South Florida as their real estate destination.
Full-service FIRPTA assistance available in Spanish for our Latin American and Spanish-speaking clients.
ContáctenosFIRPTA Statutory Framework: Key Rules for 2026
The buyer (transferee) of a U.S. real property interest from a foreign person is required to withhold and remit tax to the IRS. The withholding obligation falls on the buyer, not the seller, making early coordination between parties essential.
Under Section 897, gain or loss from the disposition of a U.S. real property interest by a foreign person is treated as effectively connected with a U.S. trade or business, subjecting it to U.S. income tax at applicable capital gains rates.
A foreign seller may apply for a withholding certificate to reduce the standard 15% withholding to the amount of the seller's maximum tax liability on the gain. The IRS has 90 days to act on a complete application filed before or at closing.
The withholding rate is reduced to 10% (from 15%) when the sales price is $300,001 to $1,000,000 and the buyer provides a certification of intent to use the property as their primary residence. This exemption rarely applies to Miami Beach luxury transactions.
Foreign sellers without a U.S. Individual Taxpayer Identification Number (ITIN) must apply using Form W-7 before or concurrent with the FIRPTA process. The ITIN is required to file Form 1040-NR and to receive any refund of excess withholding.
Special withholding rules apply when the seller is a foreign corporation, partnership, trust, or estate. The applicable withholding rate and exemption analysis differs from individual foreign sellers, requiring careful entity classification before closing.
Foreign Seller Tax Withholding in Miami Beach: Common Questions
David L. Wrubel, CPA, PA · FIRPTA Specialist · Miami Beach, FL 33139
Foreign Seller Tax Withholding in Miami Beach: Expert FIRPTA Guidance
David Wrubel, CPA explains the Foreign Investment in Real Property Tax Act compliance requirements and how our firm helps international sellers navigate the withholding process, reduce their exposure through Form 8288-B, and recover capital efficiently.
Selling Miami Beach Real Estate as a Foreign National?
Do not let 15% FIRPTA withholding lock up your capital. Contact our firm today to begin the Form 8288-B reduction process.