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FIRPTA: New Proposed Regulations, Identifying Exempt DCQIEs, Withholding Rules, Holding Structures

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Tuesday, June 6, 2023

Recorded event now available

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This webinar will analyze FIRPTA (Foreign Investment in Real Property Tax Act) rules for foreign investors in U.S. real estate. Our panel of multinational tax experts will review the recently released regulations, consider appropriate holding structures to minimize U.S. tax liability, and detail the withholding tax remittance requirements for non-citizens and tax professionals working with nonresident taxpayers.


Generally, capital gains are sourced to the country where a taxpayer is domiciled. Section 897, however, subjects sales of foreign investment in USRPI (U.S. real property interests) to U.S. taxation. On Dec. 28, 2022, proposed regulations were released, including a definition of DCQIEs (domestically controlled qualified investment entities). These entities escape taxation under Section 897. Real estate advisers need to understand DCQIE qualifications to determine the tax impact of the proposed regulations on multinational taxpayers.

Section 1445 requires withholding on the disposition of USRPIs. Determining who is subject to withholding, the applicable withholding rate, and how to remit the necessary pre-payment is challenging. Determining whether a person or entity is considered a foreign person or a U.S. person is difficult. Withholding rates vary based on the use of the U.S. property and the gross sales price. Withholding Forms 8288 and Form 8288-A must be completed and submitted timely, and a taxpayer may choose to apply for reduced withholding via Form 8288-B. Tax advisers working with multinational investors need to grasp the many aspects of FIRPTA to properly assist nonresidents.

Listen as our panel of international tax advisers explains FIRPTA requirements, including determining who is subject to these rules, the related withholding requirements, and the impact of the recently proposed regulations to mitigate U.S. taxation on the sale of U.S. property.



  1. FIRPTA: introduction
  2. Foreign persons subject to withholding
  3. Withholding
    1. Requirements
    2. Withholding certificate
    3. Completing Forms 8288, 8288-A, and 8288-B
  4. Proposed regulations
  5. Holding structures
  6. Planning to mitigate U.S. tax exposure


The panel will review these and other critical issues:

  • When nonresidents can benefit by requesting a withholding certificate
  • How holding structures impact taxation of USRPI
  • Withholding requirements and rates for the sale of U.S. property by foreign investors
  • The impact of the proposed regulations on REITs


Diosdi, Anthony
Anthony V. Diosdi

Diosdi & Liu

Mr. Diosdi is an experienced trial lawyer who regularly defends individuals and corporations in matters involving tax...  |  Read More

Santa, Mishkin
Mishkin Santa, JD, LLM, TEP

Principal, Director of International Tax
The Wolf Group

Mr. Santa focuses his practice on repatriation tax, as well as individual income tax compliance, estate, gift &...  |  Read More

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