Global Definitions Database

A US tax law enacted as Subtitle C of Title XI (the Revenue Adjustments Act of 1980) of the Omnibus Reconciliation Act of 1980, that imposes income tax on foreign persons disposing of US real property interests; tax is imposed at regular tax rates for the taxpayer on the amount of gain considered recognized; purchasers of real property interests are required to withhold tax on payment for the property; the 2015 omnibus spending bill significantly altered FIRPTA with a change in withholding rate for closings post-February 2016.