Understanding FIRPTA Withholding Certificates in Venice
Foreign property sellers in Venice often overpay taxes under FIRPTA because they don’t realize they can apply for a withholding certificate. This document allows the IRS to reduce the amount withheld if the actual tax owed will be lower than 15% of the sale price.
How It Works
By submitting Form 8288-B, sellers can request a reduced withholding before or after closing. If approved, the IRS instructs the buyer to withhold less or refund the overpaid amount.
More details on how tax withholding works can be found in Investopedia’s FIRPTA overview.
Important Filing Tips
Apply early—ideally before closing.
Use the correct ITIN (Individual Taxpayer Identification Number).
Keep track of all communications and submissions.
Verify that both buyer and seller use consistent information.
A well-prepared application can save time and prevent unnecessary stress. For support through this process, consult White Sands FIRPTA & Tax Solutions for FIRPTA services Venice to ensure all details are handled correctly.
