We are a U.S. company and we were recently presented with an interesting real estate deal in New York City. The main contacts of the seller claim that they are a domestic company and that they are not subject to FIRPTA. But after some research we found out that this company is affiliated with a parent group in China. But there is very limited information about the structure of the company. How can we decide whether the seller is subject to FIRPTA withholding? If they are, who is responsible for the withholding? How could FIRPTA withholding impact the negotiation of the price?
You need to consult a tax advisor for this. We received numerous questions relating to FIRPTA and addressed them according to our own experience. We are not specialist in this field and would prefer to avoid sharing the possibility of misguiding your question.
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