Foreign Investment in U.S. Real Estate: Tax Concerns When Acquiring or Disposing of Ownership Interests
The U.S. federal tax rules governing investment in U.S. real estate by foreign individuals and companies are intricate. FIRPTA taxes foreign individuals and corporations on their dispositions (transfers, sales, gifts, exchanges) of U.S. real property interests, and in addition generally imposes reporting and withholding. Tax treatment varies with the form of ownership. This presentation will cover an overview of the tax rules that apply to foreign investors in US real property, a discussion of the investment structure alternatives and their tax consequences, and a summary of the tax reporting obligations and tax filings for non-US owners of US real property, including the FIRPTA compliance that comes into play on dispositions (gifts, sales, dissolutions, and domestication of corporations) of US real property.