Foreign Investment in U.S. Real Estate: Tax Concerns When Acquiring or Disposing of Ownership Interests
Entity Selection, FIRPTA, Blocker Corporations, and the BEAT Tax
Note: CPE credit is not offered on this program
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE webinar will examine tax challenges and practical implications for foreign investors in U.S. real estate. The panel will discuss the tax advantages of blocker companies, choice of investment structures and other investment vehicles, and more.
Outline
- Overview of tax rules that apply to foreign investors in U.S. real estate
- Income
- Withholding
- FIRPTA
- Estate and gift tax
- Investment structure alternatives, their tax consequences, and practical implications to consider when advising clients
- Individual ownership
- Ownership through U.S. LLC
- Ownership through a foreign corporation
- Ownership through U.S. corporation
- Ownership through trusts
Benefits
The panel will review these and other crucial issues:
- What are the tax implications of purchasing U.S. real estate individually vs. through an LLC vs. a blocker corporation or a trust?
- What are the tax reporting obligations for non-U.S. owners of U.S. real estate?
- How does FIRPTA compliance vary between different ownership structures?
- What are the latest developments regarding approaches to foreign investment in U.S. real estate?
Faculty
Edward J. Hannon
Shareholder
Polsinelli
Mr. Hannon, attorney and certified public accountant, concentrates his practice on providing advice and counsel to... | Read More
Mr. Hannon, attorney and certified public accountant, concentrates his practice on providing advice and counsel to clients on the use of various tax-savings structures in a variety of real estate matters. He has worked with clients in providing advice on tax-driven structures involving real estate located throughout the United States. His practice ranges from joint ventures for real estate development projects to projects that include investment in U.S. real estate by foreign investors and tax-exempt entities. Mr. Hannon has an in-depth understanding of regulations, including Section 1031 of the Internal Revenue Code and Delaware Statutory Trusts (DST) and tenant common structures to facilitate the like-kind exchange process. He is co-leader of Polsinelli’s DST working group and has advised various real estate companies on the use of the Delaware Statutory Trusts structure to raise co-investment capital.
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Cecilia B. (Ceci) Hassan
Founding Attorney
Hassan International Law
Ms. Hassan helps international clients, their families, family offices, and their companies with structuring their... | Read More
Ms. Hassan helps international clients, their families, family offices, and their companies with structuring their investments inside and outside of the U.S., such as international trust planning, structuring US real estate holding structures with compliance with FIRPTA, investments, and holdings in the U.S., global exchange of information (FATCA, CRS), and other international tax planning matters. She also handles general tax planning for individuals and companies.
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