This is important information for non United Citizens who are selling their property here in United States, or for the reason of this blog, in Texas. Debra Holloway of Gracy Title was our guest speaker at Keller Williams Realty today.
Debra says that if the property is 300,000 or over, Gracy Title needs to withhold 10% of the sales price and send this amount to the IRS on behalf of the Seller. The Seller needs to settle with the IRS if they owe more money or get part of this money back. In addition, there are IRS forms that need to be completed at closing. If the property is under 300,000, the 10% is withheld and given to the Buyer. The Buyer is responsible for sending the money to the IRS and complete some IRS forms. This part becomes sticky as what Buyer in their right mind would want to take responsibility of this kind of money? An attorney needs to be involved.
If you are Foreign Seller, make sure you let your agent know and do your research before selling your property. If you are a Buyer, make sure your agent inquires to make sure that the Seller is a US Citizen so the Buyer is not put in this similar situation.
Otherwise, Happy Selling and Happy Buying in Austin, Texas.
