Can a non-resident avoid withholding taxes through reinvesting?

[Apkesh Kumar]

Hello, I am a non-resident foreign investor with a a rental property that i own in Florida which I bought for $300K.  I would like to sell that property and buy another property outside of Florida, most likely in Chicago or Dallas where we plan to move in 2 years time. The property will likely go for around $400k - minus realtor commissions.  I understand when you sell the property in Florida, there is a withholding tax foreigners have to pay on any property more than 300K.  I also understand that the withholding taxes are taken not from the total sale price(?) and not profit?

Considering I plan on reinvesting the money back into another property, albeit not in FL, can someone tell me if there is a way to avoid this tax?

[Eamonn McElroy]

It looks like you're already considering reinvesting.  Ask your tax pro about a 1031 exchange.  FIRPTA can be avoided for a non-resident alien via a 1031 exchange, however the hoops you need to jump through are more tedious than a US citizen going through a regular 1031.  Generally, your tax pro will need to provide the buyer with a "Declaration and Notice to Complete an Exchange" and the exchange must be simultaneous (i.e. same day).

Your tax pro can walk you through all the steps you'll need to take to be compliant.  Best of luck.