All Forum Posts by: DS MokNgo

Thanks for your respond!

In one of the email from her last year, she said "We will be able to use the FIRPTA withholding tax on your 2023 US return against any possible tax payable so you will either receive most or all the withholding tax back on the 2023 US return"

However my selling agent told me that I need to pay tax for 20% capital gain, so I am unsure if I will actually get most of the withholding back, or I will need to pay a significant amount to IRS.

purchase price about 12 yrs ago was $80k + costs. Few months ago sold for $345k + other related costs.

Hi All,

I am not a US resident and live in Australia. I have sold my US investment property in 2023. For Tax Return 2022, it is my first time I need to pay tax to IRS ($269). My accountant gave me instruction for paying the amount:

 Include Form 1040-V and a check or money order in the amount of $269.00, payable to
     the "United States Treasury". Write your social security number or tax identification
     number and "2022 Form 1040NR" on the check. Do not staple or otherwise attach your
     payment or Form 1040-V to your return.

     Mail the return and payment to:
     Internal Revenue Service
     P.O. Box 1303
     Charlotte, NC 28201-1303
     USA

It looks like I have to mail a physical check to IRS? Does the above info given to me looks correct and not a scam? Is there an easier way like direct debit from my bank account? I do have a Wells Fargo account, although I only have experience with Bill Pay, since I am not a resident I might not have access to wire money via online wells fargo app. But I use to be able to link the property management portal to my bank account in case I need to contribute fund to the property management company's account.

My accountant is willing to charge a small fees and handle the above payment for me, however I might have a bigger amount due to IRS after completing the 2023 TR (for capital gain tax), so I am not sure if I am comfortable to send my accountant a large amount and she then pay IRS.

Also would anyone recommend any good / reliable accountant for my TR 2022 and 2023, who is also familiar with FIRPTA withholding? I have been using my current accountant for many years, however for the past couple years, it took me months to follow up in order to get my tax return done. So I am open to see what options I have, and how much they would charge.

Note that my TR2022 draft are almost good, just a few figures need to be corrected, so they are consistent with the previous year TR. For 2023 TR, IRS held 10% of the selling price because I am a foreigner. I am unsure if I need to pay extra or will get something back from IRS for TR2023.

Thanks so much for help!

May I ask for recommendation of real estate agents who sell property in North Phoenix? Someone who is realiable and experience. Thanks!

Thanks for your advise @Mwazomela Thurmond, it is very helpful!

Do you mind explain further about "sign a longer-term contract with the agent"? Do you mean after an agreed period if the agent can't sell my property, I can then choose other agent?

I live in Australia, and googled about "Australia US tax treaty when selling property in USA", it looks like Australia has tax treaties with US, but I am unsure how it works. Is this something US accoutant could help? or my Australia accountant?

Thanks you so much!

Hi All,

I am a foreigner to US and considering to sell my property in North Phoenix. WIthout doing any rehab, I was told it would sell for 300-325k; with rehab (spending of 25-30k) it might be able to sell for 360-380k.

I only approached 1 agent so far, and after negociation it will be 5.5% commission split between buying and seller realtors. Is it reasonable? If I negociate further does that mean it is not fair for the realtors / they might not trying as hard to sell my property?

Another ques is I wonder if FIRPTA (Foreign Investment in Real Property Tax) applies to me. If so, is it 10% or 15% of the selling price? my accoutant said it might apply to me and it will be 15%, but from the IRS video, it says 10% (https://www.irsvideos.gov/Individual/education/FIRPTA#:~:text=FIRPTA%20is%20a%20tax%20law,is%20normally%20the%20purchase%20price.)

Note that I have been filing my US Tax Return via my accoutant yearly, although I haven't been paying any extra tax yet, i guess because the accumulated loss has been more than the income.

If FIRPTA does apply to me, is it possible to play around with the number, say instead of selling the property for 325k, I sell it for 299.5K, but get the buyer to pay the comission to the agent and other fees like closing cost etc?

I am open for any feedback / resouces. Thank you!

Thanks Dick for your suggestion! Much appreciated! =)

Hi All,

My property in Phoenix AZ was being treated twice for termites. In 2011, the company who did the treatment had to return 4 times to totally get rid of them, but in 2017, only 1 treatment was enough. 

It is about 4 years since the last treatment, I am considering to have another treatment just to prevent termites come back. I had 1 company went out for inspection and quote, tenant said there is some wood damage but the inspector doesn't think it is current active termites, it could be from old termite damage like back in 2017 or could be after that. 

I am thinking just to get a treatment done for piece of mind, but I am also open for opinions. 

Also the cheapest quote I got is $500 for 1 year warranty, or $800 for 5 years warranty. For both options the treatment will be using the same method but different product / chemical being used. Which option would you think it is better? Or is there other company you would recommend? Should I go with the 1 year warranty option and just get another treatment done say after another 4-5 yrs? but then I am unsure if the product they use for the 1 year warranty option is good enough to last for 4-5 years. 

After the treatment do you think it is ok to rely on the tenant to notify my property manager if they see more termite damage? Or when routine inspection (every 6-12 month) happen it should be obvious enough for the inspector to see if there is active termites, so my property manager can notify the company to come back during warranty period? Or should I get someone professional to go back take a look say yearly during the warranty period?

Thanks for help!

@Dick Rosen I sent a request to connect with you, if that's what you meant DM. Thanks so much!

Thanks @Doug McVinua!  It is in the below area where i circled in blue. Single family home.

Home is already tenanted but I found it very stressful to work with my current property manager, I was being charged expensive fees without my consent. 

Hi,

I wonder if anyone has any recommendations for a good property management in Phoenix Arizona that you are familiar with?

Much appreciated!!