Andrew, a US citizen, purchased real estate with a sales price of $2,000,000 and an adjusted basis of $1,200,000 from Chris. Chris is not a US resident and cannot certify as such. How much, if any, is Andrew required to withhold?

Andrew is required to withhold 10% of the sales price of the property, which is $200,000. Chris will receive $1,800,000 and Andrew will remit $200,000 to the IRS.

Andrew is required to withhold 10% of the gain on the sale, which is $80,000 (($2,000,000 - $1,200,000) x 10%). As a result, Chris will receive $1,920,000 and Andrew will remit $80,000 to the IRS.

Andrew is not required to withhold any proceeds from the sale, and Chris will receive $2,000,000.

Andrew is required to withhold 15% of the sales price of the property, which is $300,000. Chris will receive $1,700,000 and Andrew will remit $300,000 to the IRS.

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