---
title: "Screen a disposition for FIRPTA withholding facts"
url: "https://ailawframework.com/practice/mergers-and-acquisitions-private-equity/check-foreign-resident-capital-gains-withholding-on-a-share-or-asset-acq/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A2-J20261018-2-US"
practice_area: "Mergers & Acquisitions / Private Equity"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Screen a disposition for FIRPTA withholding facts

> 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.…

Canonical page: https://ailawframework.com/practice/mergers-and-acquisitions-private-equity/check-foreign-resident-capital-gains-withholding-on-a-share-or-asset-acq/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Mergers & Acquisitions / Private Equity](https://ailawframework.com/practice/mergers-and-acquisitions-private-equity.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| 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 | United States |
| Applies to | [Check foreign resident capital gains withholding on a share or asset acquisition](https://ailawframework.com/practice/mergers-and-acquisitions-private-equity/check-foreign-resident-capital-gains-withholding-on-a-share-or-asset-acq.md) |

## Checking plan

- What the AI does: 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.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Do not apply the 15 percent figure until the lawyer decides the interest is a United States real property interest.
- A share deal is not automatically covered.

## Sources

- [26 U.S.C. section 1445, Withholding of tax on dispositions of United States real property interests](https://www.law.cornell.edu/uscode/text/26/1445) (checked 2026-10-22)
- [ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) (checked 2026-10-22)
- [ABA Model Rule 1.6, Confidentiality of Information](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_6_confidentiality_of_information/) (checked 2026-10-22)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Foreign resident capital gains withholding checklist for a share or asset acquisition](https://ailawframework.com/precedents/mergers-and-acquisitions-private-equity/frcgw-clearance-and-declaration-checklist.md) | Checklist | Yellow | A checklist for the purchaser: clearance certificates for taxable Australian real property, and residency or non-IARPI declarations for other assets, including shares that may be indirect Australian… |

Signed-in accounts can read the full text of each one.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*