Structuring Foreign Investment in U.S. Real Estate: Entity Selection and Transaction Structures
FIRPTA, Determining Individual vs. Entity Ownership Structures, Achieving Optimal Tax Treatment
Recording of a 90-minute premium CLE/CPE video webinar with Q&A
This CLE/CPE course will provide tax counsel with a thorough and practical guide to structuring alternatives and tax considerations for foreign investors in U.S. real estate. The panel will outline best practices for determining the purchasing entity and review tax planning opportunities in structuring the deal.
Outline
- Persons subject to U.S. taxation
- U.S. citizens and residents
- Nonresident aliens
- U.S. corporations
- Foreign corporations
- Domestic U.S. trusts
- Foreign trusts
- U.S. taxation of foreign persons
- U.S. income taxation
- U.S. estate tax
- U.S. gift tax
- Special rules under Foreign Investment in Real Property Tax Act (FIRPTA)
- Gain from sale of U.S. real property interests (USRPIs) by foreign investors treated as business income
- The definition of USRPIs is very broad
- 15% withholding tax applies to gross proceeds from the sale
- Exceptions to FIRPTA
- Special considerations
- Advantages and disadvantages of alternative investment structures
- Individual ownership
- Ownership by U.S. LLC
- Ownership by U.S. corporation
- Ownership by foreign corporation
- Ownership by U.S. subsidiary of a foreign corporation
- Ownership by foreign trust
- Tax strategies
- 1031 exchange
- Portfolio interest
- REIT structures
- Shared equity mortgage
- Exceptions to FIRPTA
- International tax treaties
Benefits
The panel will review these and other key issues:
- What is the definition of "U.S. real property interest" and why is that relevant?
- What are the various tax consequences of a foreign person owning U.S. real estate in an individual capacity?
- What is the impact of blocker corporations and other intermediary entities on the tax treatment of foreign investment in U.S. real estate?
- How to avoid excessive withholding tax upon a sale of U.S. real property interests
- What is the impact of tax reform on U.S. real estate investments by foreign entities?
Faculty
Christopher J. Byrne, CPA
Attorney
Christopher J. Byrne
Mr. Byrne has been practicing in the field of international taxation and cross-border estate planning as a Certified... | Read More
Mr. Byrne has been practicing in the field of international taxation and cross-border estate planning as a Certified Public Accountant and as an Attorney at Law for over 25 years.
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Richard S. LeVine
Special Counsel
Withersworldwide
Mr. LeVine's practice focuses on cross-border estate, gift and income tax planning for owners of privately held... | Read More
Mr. LeVine's practice focuses on cross-border estate, gift and income tax planning for owners of privately held companies and other high-net-worth U.S. and foreign individuals. He counsels clients on pre-immigration and pre-expatriation tax planning, offshore trusts and foundations deferred compensation planning for fund manager and structures involving life insurance. He has been heavily involved in advising clients on the IRS Voluntary Disclosure programs.
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