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Foreign investors and their American counterparts generally share the goal of
minimizing income tax liabilities from their US real estate investments. This
rather straightforward aim is complicated by the fact that non-US investors
must be concerned not only with income taxes in the United States, but in
their home country as well. What's more, the United States has a special
income tax regime that’s applicable to foreign persons. It’s quickly evident
to those involved that this is a complex area subject to new developments as
the US Congress continually entertains new tax laws (and other statutes with
relevant impact like the PATRIOT Act), the Internal Revenue Service
promulgates regulations, rulings, announcements and interpretations, and the
US courts issue opinions impacting the area. This timely and highly practical
resource is designed to explore the considerations that are of unique concern
to foreign individuals and entities making US real estate investments. To that
end it details the US income, estate and gift tax aspects of inbound
investment in US real property and the various structural techniques that may
be employed to reduce or eliminate US tax liability under these domestic laws.
This work's single-minded focus on real estate, the encyclopedic coverage of
relevant tax considerations, and extensive materials on non-tax issues (asset
protection, non-tax reporting, limits on foreign ownership of U.S, real
estate, etc.) make it an essential resource for non-US investors and their
advisers. Structuring Foreign Investment in US Real Estate covers:
• General rules for taxing inbound investments by non-US persons
• System for taxing operating income from foreign-owned US real estate
• Regime for taxing dispositions of US real estate by non-US owners
• Withholding obligations of purchasers of US real estate from non-US sellers
• Impact of tax treaty network on US taxation of inbound real estate investment
• Limitations on non-US ownership of US real estate
• Reporting obligations for non-US owners of US real estate
• Planning for acquisitions and dispositions of US real estate by non-US
• Estate and gift tax planning for foreign-owned US real estate
This one-volume looseleaf answer questions, such as:
• How is direct foreign investment in US real estate taxed?
• How is portfolio investment in US real estate taxed?
• What are the seller’s and buyer’s tax obligations when foreign-owned US real
estate changes hands?
• What planning techniques are available to non-US persons for holding and
disposing of US real estate?
• What reporting obligations are associated with foreign ownership of US real
• Are there limitations on the ability of non-US persons to own US real estate?
• What impact do tax treaties have on planning for foreign investment in US
• What state and local tax issues arise on inbound investment in US real
• What estate and gift planning should be done for non-US owners of US real
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