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Updated over 5 years ago, 07/08/2019
Can a non-resident avoid withholding taxes through reinvesting?
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?