---
title: "Screen a disposition of a U.S. real property interest for FIRPTA withholding"
url: "https://ailawframework.com/practice/taxation/screen-an-asset-against-the-taxable-australian-property-categories/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A26-PE20261022-8-US"
practice_area: "Taxation"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Screen a disposition of a U.S. real property interest for FIRPTA withholding

> State whether the transferor is a foreign person, whether the asset is a U.S. real property interest, and the amount realized.…

Canonical page: https://ailawframework.com/practice/taxation/screen-an-asset-against-the-taxable-australian-property-categories/united-states  
Last reviewed: 2026-10-22

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

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Taxation](https://ailawframework.com/practice/taxation.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | State whether the transferor is a foreign person, whether the asset is a U.S. real property interest, and the amount realized. Apply 15 percent only as the general rate, and flag a residence the transferee will use as a home if the amount realized does not exceed $1,000,000. |
| What the lawyer must review | The IRS FIRPTA page says a disposition of a U.S. real property interest by a foreign person is subject to withholding. The buyer is generally the withholding agent and must withhold 15 percent of the amount realized, with 10 percent stated for dispositions before February 17, 2016. A U.S. real property interest includes an interest, other than as a creditor, in real property located in the United States or the U.S. Virgin Islands, certain personal property associated with the use of that real property, and an interest in a domestic corporation unless it is established that the corporation was not a U.S. real property holding corporation during the shorter of the holding period or the five years ending on the disposition. 26 U.S.C. § 1445 requires the transferee to withhold 15 percent of the amount realized, and it substitutes 10 percent where the property is acquired by the transferee for use as a residence, the amount realized does not exceed $1,000,000, and subsection (b)(5) does not apply. |
| Written for | United States |
| Applies to | [Screen an asset against the taxable Australian property categories](https://ailawframework.com/practice/taxation/screen-an-asset-against-the-taxable-australian-property-categories.md) |

## Checking plan

- What the AI does: State whether the transferor is a foreign person, whether the asset is a U.S. real property interest, and the amount realized. Apply 15 percent only as the general rate, and flag a residence the transferee will use as a home if the amount realized does not exceed $1,000,000.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- The IRS page says a foreign corporation that distributes a U.S. real property interest must withhold 21 percent of the gain it recognizes on the distribution to foreign shareholders. That is a different rate from the buyer's 15 percent.
- Exceptions and withholding certificates are on the IRS pages linked from the FIRPTA guide. Open those before saying no tax is withheld.

## Sources

- [IRS: FIRPTA withholding](https://www.irs.gov/individuals/international-taxpayers/firpta-withholding) (checked 2026-10-22)
- [26 U.S. Code § 1445](https://www.law.cornell.edu/uscode/text/26/1445) (checked 2026-10-22)

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