FIRPTA-BUYER

[Joe Abughazaleh]

I've been searching the forums without any luck. I'm interested in buying a condo in Las Vegas where the seller is subject to Firpta withholding. I've read the tax code on the IRS website and also found this:

Q: Who is responsible for FIRPTA withholding?

A: The IRS rules place the responsibility for withholding potential income tax due in the amount of 10% of the purchase price on the buyer of the real property from a foreign entity. The real property becomes the security for the IRS to ensure that they receive taxes that are due to them. If the payment is not made by the buyer, the IRS can seize the real property (or other assets of the buyer).

I'm wondering if anyone out there has had actual experience as a buyer? 

Am I as the buyer holding the 10 to 15% and paying the IRS when I do my tax returns? Or what's the actual process. Are there any surprises or pitfalls I should be concerned with?