Howard Goldberg and Lisa B. Petkun of Pepper Hamilton have summarized recent updates to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) via the enacted Protecting Americans from Tax Hikes Act of 2015. The more recent act exempts “qualified foreign pension funds” from FIRPTA taxation as long as they are already engage in a business in the US with attributable real estate gains. The act also expands portfolio investor exemption, clarifies “domestically controlled REIT” for exemption purposes, and increases the FIRPTA withholding rate from 10% to 15%. Goldberg and Petkun also note some relevant REIT reforms included in the Act of 2015.
Find the full post here: Reforms to the Foreign Investment in Real Property Tax Act and REIT Taxation
Posted by Allison Trupp, Associate Editor, Wealth Strategies Journal