![\"1450](\"http:\/\/ilovesofla.com\/wp-content\/uploads\/2016\/01\/1450-Brickell-188x300.jpg\")
<\/a>Two changes made to the\u00a0 U.S. Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) will go into effect February 17.\u00a0 While one affects foreign investment in publicly-traded real estate investment trusts (REITs) and should make commercial property in the U.S. more attractive to foreign buyers, the second one affects foreign buyers of residential properties.<\/p>\nThe change relating to ownership of U.S.\u00a0 REITs is the doubling of the maximum amount of stock a foreign investor may have in REITs from 5% to 10% and allowing foreign pension funds to invest in REITs withoug having FIRPTA apply.\u00a0 Ralph W. Holmen, associate general counsel for the National Association of Realtors\u00ae<\/sup> (NAR) states that these changes “… are conservatively estimated to boost foreign investment in U.S. commercial real estate by $20-$30 billion per year'”.<\/p>\nIn order to cover the costs associated with the two commercial provisions, the withholding amount for residential properties will increase from 10% up to 15% on properties that are over $1 million, whether it is used as a primary residence or not.\u00a0 For properties $300,000 or less or $300,000 to $1 million, the rules don’t change.\u00a0 Under $300,000, no FIRPTA tax is paid if it is to be used as a primary residence.\u00a0 From $300,000 – $1 million, the current 10% FIRPTA tax will not change as long as the property is used as a primary residence.<\/p>\n
Buyers need to know that although most settlement agents do withhold the FIRPTA tax, if they do not, the buyer is the one that is legally responsible for the tax owed if it is not withheld.<\/strong><\/p>\n <\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Two changes made to the\u00a0 U.S. Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) will go into effect February 17.\u00a0 While one affects foreign investment in publicly-traded real estate investment trusts (REITs) and should make commercial property in the U.S. more attractive to foreign buyers, the second one affects foreign buyers of<\/p>\n
Read More<\/a><\/p>\n","protected":false},"author":6137,"featured_media":130092,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_expiration-date-status":"","_expiration-date":0,"_expiration-date-type":"","_expiration-date-categories":[],"_expiration-date-options":[]},"categories":[12269],"tags":[],"yoast_head":"\nNew FIRPTA Rules Take Effect February 17, 2016 - BHHS EWM Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ewmrealestate.com\/blog\/new-firpta-rules-take-effect-february-17-2016\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New FIRPTA Rules Take Effect February 17, 2016 - BHHS EWM Realty\" \/>\n<meta property=\"og:description\" content=\" Two changes made to the\u00a0 U.S. Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) will go into effect February 17.\u00a0 While one affects foreign investment in publicly-traded real estate investment trusts (REITs) and should make commercial property in the U.S. more attractive to foreign buyers, the second one affects foreign buyers ofRead More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ewmrealestate.com\/blog\/new-firpta-rules-take-effect-february-17-2016\/\" \/>\n<meta property=\"og:site_name\" content=\"BHHS EWM Realty\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/EWMRealtyInternational\" \/>\n<meta property=\"article:published_time\" content=\"2016-01-21T20:01:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ewmrealestate.com\/blog\/wp-content\/uploads\/2019\/06\/BHHS-On-Solid-Background.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"376\" \/>\n\t<meta property=\"og:image:height\" content=\"376\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jennifer Wollmann\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jennifer Wollmann\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ewmrealestate.com\/blog\/new-firpta-rules-take-effect-february-17-2016\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/ewmrealestate.com\/blog\/new-firpta-rules-take-effect-february-17-2016\/\"},\"author\":{\"name\":\"Jennifer Wollmann\",\"@id\":\"https:\/\/ewmrealestate.com\/blog\/#\/schema\/person\/200254815a9f9f8fac1816e9e8bcb5d4\"},\"headline\":\"New FIRPTA Rules Take Effect February 17, 2016\",\"datePublished\":\"2016-01-21T20:01:45+00:00\",\"dateModified\":\"2016-01-21T20:01:45+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ewmrealestate.com\/blog\/new-firpta-rules-take-effect-february-17-2016\/\"},\"wordCount\":263,\"publisher\":{\"@id\":\"https:\/\/ewmrealestate.com\/blog\/#organization\"},\"articleSection\":[\"In The News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ewmrealestate.com\/blog\/new-firpta-rules-take-effect-february-17-2016\/\",\"url\":\"https:\/\/ewmrealestate.com\/blog\/new-firpta-rules-take-effect-february-17-2016\/\",\"name\":\"New FIRPTA Rules Take Effect February 17, 2016 - 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![\"1450](\"http:\/\/ilovesofla.com\/wp-content\/uploads\/2016\/01\/1450-Brickell.jpg\")
<\/a>Two changes made to the\u00a0 U.S. Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) will go into effect February 17.\u00a0 While one affects foreign investment in publicly-traded real estate investment trusts (REITs) and should make commercial property in the U.S. more attractive to foreign buyers, the second one affects foreign buyers of residential properties.<\/p>\n