G-4 Visa Holders and FIRPTA in Washington, D.C.

Chris Stoll

We contacted Pontius regarding a legal matter. The staff listened carefully to our questions and concerns, then followed up with a phone call to further discuss our situation. This discussion was very useful and helped give us direction to start resolving our issue and concerns. All the staff were very courteous and kind.

Cris C

Very helpful and professional!

Yuanting Luo

John is very knowledgable on the tax law. It's a great help after talking with John regarding my tax situation.

Claire Sanderson

John and his team were very professional and responded to my questions and provided guidance quickly.

Prince Mampouya

I had an exceptional experience working with John Pontius and his team. Within minutes of submitting a consultation request through their website, I received a feedback from Gigi (Executive Assistant) at his office for a seamless preliminary intake. The following day, I spoke directly with John, who was not only incredibly friendly but also remarkably knowledgeable. He broke down a complex situation into clear, actionable options and thoroughly answered every single question I had. If you need expert guidance and prompt, high-touch service, I highly recommend John Pontius.

Alex Kaufman

Incredibly helpful and easy to get a free consult. Recommend

South Carolina Ave

We had a very positive experience working with Pontius Tax Law. John and his team were very knowledgeable, responsive, courteous and professional. I would definitely recommend them.

KER

I called John frantically after discovering an error on my taxes that spanned a few years. He called me back and was patient, kind, and exceptionally competent in helping me fix my situation, as was Dana on his team. I’m deeply grateful for their help and would not hesitate to recommend them for any sort of tax issue. Thank you again!

walt winston

I would highly recommend Pontius Tax Law for anyone navigating complex tax issues. From the very first consultation, it was clear that I was in the hands of true professionals who actually care. In fact, they actually care—and that makes all the difference when you are dealing with the stress of tax law. I would especially like to thank Dana. She was absolutely instrumental in managing my case. Dana is incredibly diligent, responsive, and possesses a deep understanding of the internal workings of the IRS. She kept me informed and managed each step of the process with total professionalism. What I appreciated most was how she patiently awaited my responses and the various documents she required. Because of my disability, my responsiveness was sometimes delayed, but Dana remained patient and accommodating throughout. I want to thank both Dana and John tremendously. They are worth every penny, not only for the peace of mind they provide but for their actual accomplishments in what is a very high-stakes process. Sincerely, Walt Winston

Mike M

Called after hours and was meeting with John and his team the next morning! Very professional group who's value to me was evident right away!

Many G-4 visa holders purchase homes or investment properties while living and working in the Washington, D.C. area. When it comes time to sell, however, many are surprised to learn that the Foreign Investment in Real Property Tax Act (FIRPTA) may require tax withholding at closing.

It’s important to note that your immigration status alone does not determine whether FIRPTA applies. Instead, these rules depend on your tax residency and whether you qualify as a foreign person under federal tax law. Withholding requirements also impact U.S. citizens who purchase property from foreign nationals. Our experienced FIRPTA attorneys can advise you on how to deal with G-4 visa holders and FIRPTA in Washington, D.C.

Understanding FIRPTA Obligations

FIRPTA allows the IRS to collect taxes from foreign persons who sell U.S. real property interests. Rather than waiting for the seller to file a tax return, the law generally requires the buyer to withhold a portion of the sale proceeds and submit it directly to the IRS. More often than not, the buyer becomes responsible for complying with the withholding requirements.

For G-4 visa holders, determining whether FIRPTA applies is not always straightforward. While many G-4 visa holders are considered foreign persons for federal tax purposes, each situation depends on the individual’s tax residency status and the applicable Internal Revenue Code provisions. Two people with the same visa classification may have different FIRPTA obligations depending on their circumstances.

Because FIRPTA rules intersect with immigration status and tax law, it’s always a good idea to discuss these sales with an attorney. Our Washington, D.C. firm can help you navigate the complexities of G-4 visas and FIRPTA compliance.

What Counts as Real Property Under FIRPTA?

Many people assume FIRPTA applies only to traditional real estate such as homes or commercial buildings. In reality, the law covers a broad range of property interests. The most obvious examples include single-family homes, condominiums, apartment buildings, office buildings, retail centers, warehouses, and undeveloped land. These properties clearly qualify as U.S. real property interests when located within the United States.

However, the rules also apply to some permanent improvements and interests attached to the land. These can include mineral interests such as oil and gas rights, mines, wells, and other natural deposits. You might also have to comply with FIRPTA when it comes to things like buried fiber optic cables or other permanent infrastructure.

Because these rules extend beyond residential property, sellers are best served by relying on a D.C.-based attorney to explore their obligations related to G-4 visas and FIRPTA.

How to Calculate FIRPTA Withholdings

Many sellers mistakenly believe FIRPTA withholding is based on their profit from the sale. In most cases, the calculation works differently. The withholding generally equals 15% of the amount realized, not 15% of the taxable gain.

However, there are some exceptions you should also be aware of. First and foremost, withholding isn’t necessary for property up to $300,000 if the buyer intends to use the property as their primary residence. The withholding rate for the residence scales up as the purchase price increases. This is in contrast to the sale of property that won’t be used as a primary residence, which always comes with a 15% withholding rate.

G-4 Visa Holders Can Discuss FIRPTA Obligations with a D.C. Attorney

FIRPTA is complicated, and there are real consequences that come with failing to withhold and remit the right amount. If you’ve got questions about how you should proceed, now is the right time to speak with a tax lawyer.

Our firm can explain the intersection between G-4 visa holders and FIRPTA in Washington, D.C. Contact us as soon as possible for a private consultation.