Under the Foreign Investment in Real Property Tax Act of 1980, commonly known as FIRPTA, non-U.S. Investors are subject to taxation on the disposition of U.S. Real Property Interests. On December 18, 2015, Congress passed the Protecting Americans from Tax Hikes Act of 2015, which modifies regulations relating to real estate investment trusts (REITs) as well as non-U.S. investors in U.S. real estate. While currently, unless an exemption applies, closing agents withhold 10% of the gross sales price on real property and remit the 10% to IRS to ensure payment of the taxes on the gains due under FIRPTA, under the new law, effective February 16, 2016, the FIRPTA Withholding is increased to 15%. If the actual taxable gain recognized by the non U.S. Investor will be less than the 15% being withheld, there is a mechanism to apply for reduced withholding. Conroy, Conroy & Durant, P.A. does not provide tax advice, but we do suggest that buyers and sellers consult with a tax professional regarding any potential tax liability with respect to the sale of real property in the U.S. and the benefits of the application for reduced withholding.