pk
Level 15
Level 15

Deductions & credits

@joyanyu . FIRPTA withholding is just like any other withholding by the IRS to assure that they get their due bite.   If you have had a chance to go through the IRC 1445  details you will see that on receipt of the funds ( FIRPTA withholding ), IRS will issue you a cert  showing the receipt of the withholding.  When you file your current year return, you include this amount as paid in / withheld, thus reducing your final tax due ( or increasing your refund  as the case may be ).  What @DaveF1006  was alluding to was an early refund of the amounts so withheld -- I do not believe that will work here.  So you can pay the amount and reconcile  these  when you file your return  next year ( for 2021).

California has a similar policy for property sales in CA irrespective  whom you are -- but their bite is a lot smaller .

BTW -- if you and your spouse  have owned the property for at least two years  and have used it as your main residence for at least a total of 730 days   (and a few other and & buts), you should be able to exclude most of the gain from taxation by the Feds.

Is there more I can do for you ?

Namaste ji

 

pk