What does a conditional green card mean for FIRPTA?

The first step is to determine if that transferor is a foreign person or not. Here is the review: Is he or she a U.S. citizen or a resident alien by meeting one of the following? Lawful permanent resident (green card holder), substantial presence test? It appears he or she is a lawful permanent resident since a conditional green card holder is treated the same as a green card holder for all purposes. While some treaties may allow a person to be resident in more than one country, it is unlikely this person is not a resident.

You should consult with a tax expert since issues regarding tax liability are complex and often are very case-specific or person-specific. In general, a conditional lawful permanent resident has the same rights, privileges, duties and responsibilities as a permanent resident.

This really highlights the importance of a team of professionals for a business or investment based immigration process. As an immigration attorney, I can&#39t really speak to FIRPTA, but I definitely know a few specialists in that area who I would bring in to help!

The seller, who has conditional lawful permanent residency, would be deemed to be a non-foreign person for FIRPTA purposes. While it is highly unlikely that he will fail to obtain a permanent green card given the very high approval rate for I-829 petitions to remove conditions, you should not be held liable for the FIRPTA taxation if at the time of the transaction he was a non-foreign person.

Yes, the seller is correct. He is currently a conditional permanent resident. Even assuming he later fails to obtain a permanent residency (permanent green card), the sale as a conditional permanent resident stands. Based on experience, the buyer could never be held retroactively liable.

Conditional residents are permanent residents for most purposes.

A conditional resident is still a permanent resident and could do everything that U.S. citizens could do except vote. Thus, he is not a foreign person at this time of your transaction.