Hello, I hope someone can help. I have a client and she sold a property and they collected FIRPTA withholding. How do I report this on her taxes? 8288 was filed!

[Just-Lisa-Now-]

Whats FIRPTA ?

[Skylane]

Try line 18a of the Tax Payments Worksheet or just show it as an estimated payment

(Foreign Investment in Real Property Tax Act)

In NJ there's a bulk sales tax requirement for income properties at time of closing. I generally enter it as an estimated payment.

[itonewbie]

You would report the sale on your client's return as US-ECI.

Your client will claim a credit for the taxes withheld on the return but must attach a copy of the F.8288-A showing the taxes withheld.  Assuming the buyer/agent followed the proper procedures, the F.8288, F.8288-A, along with the withholding should have been transmitted to the IRS within 20 days of the sale and the IRS would then have sent your client the stamped Copy B of F.8288-A, which your client must attach to the return.