Published: Sep 19, 2020

Updated: Nov 15, 2023

FIRPTA: What Foreign Investors of US Real Estate Need to Know

[1]I. R.C. § 1445(a); 26 C.F.R. §1.1445-1(b)(1). [2] See, I. R. C. § 7701(a)(30) (defining a “United States Person” as “a citizen or resident of the United States, a domestic partnership, a domestic corporation, any estate (other than a foreign estate, within the meaning of paragraph (31)), and any trust if—a court within the United States is able to exercise primary supervision over the administration of the trust, and one or more United States persons have the authority to control all substantial decisions of the trust”). [3] I. R.C. §63. [4]William D. Metzger, Foreign Investors Real Property Tax Act: Historical Perspective and Critical Evaluation, 5 W. New Eng. L. Rev. 161, 162 (1982). [5] Lisa B. Petkun, The Foreign Investors Real Property Act of 1980, 1 Penn. St. Int’l L. Rev. 11, 11 (1982). [6] Omnibus Reconciliation Act of 1980 (Foreign Investment in Real Property Tax Act of 1980), Pub. L. No. 96-499, §94 Stat. 2682 (1980) (codified as I.R.C. §897). [7] I.R.C. §897(a)(1). [8] See Protecting America from Tax Hikes Act (PATH Act) of 2015, Pub. L. No. 114-113, §324 (2015) (amending I.R.C. §1445). [9]I.R.C. §1445(a) (2015). [10]See Protecting America from Tax Hikes Act (PATH Act) of 2015, Pub. L. No. 114-113, §324 (2015) (amending I.R.C. §1445). [11] Id[12] Id[13] Id[14] I.R.C. §1445(b)(2). [15] Id[16] Id[17] I.R.C. §1445(b)(2). [18] Id[19]I.R.C. §1445(b)(7).


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