• videocam On-Demand Webinar
  • signal_cellular_alt Intermediate
  • card_travel Real Property - Finance
  • schedule 90 minutes

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

$347.00

This course is $0 with these passes:

CLE
ALL
  1. keyboard_arrow_leftBack

About the Course

Introduction

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.

Description

Foreign individuals and foreign companies are subject to intricate rules when investing in US real estate, operating US real estate, and disposing of US real estate. Tax reforms and today’s current climate have impacted the practical implications of these rules. Failure to understand these rules could result in adverse consequences. Thus, counsel must be conversant with these rules impacting foreign investment when advising clients.

FIRPTA taxes foreign individuals and foreign corporations on their dispositions (transfers, sales, gifts, exchanges) of U.S. real property interests, and as a default rule, imposes reporting and withholding on such dispositions, except where an exception applies.

Tax treatment varies with the form of ownership, including whether and how withholding applies in certain transactions, among many other considerations. These considerations influence the choice of investment vehicle (in addition to any state level taxes that apply at the corporate level), as will the carried interest rules, NOL limitations, limitations on interest expense, tax treaties and depreciation.

Listen as our authoritative panel discusses critical tax considerations and tactics for counsel to foreign investors buying, holding, and disposing of U.S. real estate, and addresses practical solutions in today’s climate.

Presented By

Edward J. Hannon
Partner
Kelley Drye & Warren LLP

Mr. Hannon attorney and certified public accountant, advises clients on tax planning and tax-savings structures for real estate investments, developments, and joint ventures, with particular focus on Delaware Statutory Trusts (DSTs) and Section 1031 like-kind exchange planning. His practice spans three interconnected disciplines—real estate tax, transactional tax, and cross-border tax—allowing him to counsel clients on tax-driven structures involving real estate throughout the United States. Mr. Hannon brings deep knowledge of the regulations governing like-kind exchanges under Section 1031 of the Internal Revenue Code and regularly advises on the use of Delaware Statutory Trusts and tenant-in-common structures to facilitate the exchange process. He counsels sponsors, funds, and REITs on DST formation, master lease structuring, UPREIT conversions, bridge equity arrangements, post-exchange refinancing, and drop-and-swap transactions. His practice extends to both emerging sponsors and established real estate funds seeking to use DSTs to increase capitalization, helping clients navigate the tax-oriented issues unique to DST financing and loan structures. Mr. Hannon also brings significant experience advising existing owners and equity providers on the tax and structural challenges presented by distressed real estate. A frequent panelist on webinars and symposiums addressing tax planning for real estate transactions, Mr. Hannon has also served as adjunct faculty at DePaul University Graduate School of Business in its MBA program where he taught a course on tax and structural planning for real estate transactions.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
Cecilia B. Hassan
Founding Attorney
Hassan International Law, PLLC

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.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

Date + Time

  • event

    Tuesday, August 20, 2024

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

  1. Overview of tax rules that apply to foreign investors in U.S. real estate
    1. Income
    2. Withholding
    3. FIRPTA
    4. Estate and gift tax
  2. Investment structure alternatives, their tax consequences, and practical implications to consider when advising clients
    1. Individual ownership
    2. Ownership through U.S. LLC
    3. Ownership through a foreign corporation
    4. Ownership through U.S. corporation
    5. Ownership through trusts

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?