to me from Seller:
This is C---- I got you to do my tax this year remember me? I am saleing my property, would you be able to answers the questions on the email below. I a question as I had paid for my property $35,000 and I sale it for $24,000 I have lose $11,000. Do I have to pay tax on this? Can you please let me know what the tax law on this. Hope to hear back from you soon
to me from Title insurance agency:
I can't send funds and info until it closes
Please send me an address of where to send the funds to
I need on letterhead from you that they do not have to pay the firpta tax and why
I am sorry but i can not send the form or the funds in i can send the funds to you and then you can send the funds and form to the irs the underwriters do not allow us to handle this
Before i can do closing documents on this one i need the sellers title policy and also a few things since the seller is foreign i need a letter from their accountant telling me the amount of Foreign investment tax to be withheld at time of closing and i will need the accountant to prepare the 8288 forms for the irs and i would send the funds to the accountant to send with the forms we are not to send them to the irs the underwriter will not allow please get back to me with this information and the policy so i can clear the title
The seller in my case is a foreign person (the transferor) who is a citizen & resident of Australia.
The transferee or buyer is a corp. based in the USA.
Can I be the Withholding Agent? My role is preparer of the Forms 8288 & 8288-A, and also of the seller's Form 1040NR.