Which of the best describes the application of firpta

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Problem 1: Norma, a nonresident alien, owns a winter house in Florida. Norma sells the home for $250,000 to a U.S. citizen who will use the house as a personal residence. Which of the following best describes the application of FIRPTA?

1. FIRPTA applies because a residence is a U.S. real property interest.
2. FIRPTA does not apply to sales of personal residence for less than $300,000.
3. FIRPTA imposes a withholding tax equal to 10% of the sales price.
4. FIRPTA imposes a withholding tax equal to 30% of the sales price.

Reference no: EM132959836

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