ForCo, a foreign corporation not engaged in a U.S. trade or business, recognizes a $3 million gain from the sale of land located in the United States. The amount realized on the sale was $50 million. Absent any exceptions, what is the required withholding amount on the part of the purchaser of this land?

Question

Quizplus · Accepted Answer

The required withholding amount is 10% of the amount realized on the sale of U.S. real property interests by a foreign person, which is $50 million in this case, resulting in a $5 million withholding.

ForCo, a Foreign Corporation Not Engaged in a U