Q: Can I sell a property that I bought last year and signed FIRPTA and lived in it for more than a year but less than 2 yrs
I bought a property which is around 205k from a foreign seller, we signed FIRPTA and I lived in the property for more than a year (13 months). I was planning to live in it but I am looking to buy another property and I want to sell it. What should I do ? Can I sell this property even if I didn't live in it for 24 months?
A: If a transferee/buyer of a United States real property interest (USRPI) fails to withhold from the amount realized in reliance upon the exception that the transferee/buyer planned on using the USRPI as a personal residence for the next two years, but did not in fact reside at the USRPI for the minimum required time, the transferee/buyer shall be liable for the failure to withhold (if the transferor/seller was a foreign person and did not pay the full U.S. tax due on any gain recognized upon the transfer). However, if the transferee/buyer establishes that the failure to reside the minimum number of days was caused by a change in circumstances that could not reasonably have been anticipated at the time of the transfer, then the transferee/buyer shall not be liable for the failure to withhold.
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