Screen a disposition for FIRPTA withholding facts
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Record whether the file calls the transferor a foreign person, the amount realized printed in the contract, and whether a residence-use exception is claimed. Do not compute a withholding amount and do not decide that an exception applies.
- What the lawyer must review
- Section 1445(a) of Title 26 says that, except as otherwise provided in that section, on a disposition of a United States real property interest by a foreign person the transferee must deduct and withhold a tax equal to 15 percent of the amount realized. Subsection (b) lists exceptions. One that was read in full is a residence acquired for use as a residence where the amount realized does not exceed $300,000. Other exceptions depend on a statement by the transferor or the corporation. The tool does not draft that statement. United States real property interest is defined in section 897(c), which was not opened, so the tool does not decide that shares are covered. This is not Australian foreign-resident capital-gains withholding.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.