I'm a US citizen and my father is not a US citizen. We both jointly own a house in the US. We both have lived in the house for 2 out of the last 5 years, and the selling gain wouldn't be above 250,000$, so there is no capital gains tax.
My question is for foreign citizens there is a 10% IRS withholding on house sales (not sure of the details), so I assume that generally means if the house is sold I get half the payment and my father gets half the payment, but his half of the house sale has to be deducted 10% since he's not a US citizen. Is it possible when we sell the house to have the buyer send the full payment to me (instead of splitting half and half) and thus avoid this issue? Or perhaps have my father transfer the deed to solely under my name? Would this cause any new issues? Any insight would be appreciated. Thanks.
