BarbriSFCourseDetails
  • videocam Live Webinar with Live Q&A
  • calendar_month April 23, 2026 @ 1:00 p.m. ET./10:00 a.m. PT
  • signal_cellular_alt Intermediate
  • card_travel Tax Preparer
  • schedule 110 minutes

Foreign Investment in U.S. Real Estate: Portfolio Interest Exemption, OBBBA Impact, and IRC 163(j) Interest Limitations

Blocker Corporations, REITS, BEAT, FIRPTA Withholding Rules and Exemptions

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About the Course

Introduction

This course will provide tax advisers with a practical guide to the opportunities and challenges for foreign investors in U.S. real estate. The panel will discuss the impact of the One Big Beautiful Act (OBBBA) on foreign investments in real estate, FIRPTA withholding requirements, and blocker corporations. The webinar will also focus on the planning opportunities available to non-U.S. investors through the portfolio interest exemption to mitigate the new Section 163(j) interest limitations.

Description

Foreign individuals and corporations continue to face tax liability and withholding requirements under the existing FIRPTA rules on their dispositions of U.S. real property interests. A significant benefit available to foreign, but not U.S., investors in U.S. real estate is the portfolio interest exemption. The new business interest deduction limitation found in Section 163(j) enhances the value of this exemption to non-U.S. investors. The long-standing provision allows blocker corporations to bypass the 163(j) limitations on deducting interest expenses paid to a non-U.S. lender on a registered debt, as well as to avoid the 30% federal withholding tax on U.S.-sourced income.

Tax advisers must adhere to the election and documentation requirements to qualify for the portfolio interest exemption. The ability to avoid 163(j) limits will influence the choice of investment vehicle, as will carried interest rules, NOL limitations, limitations on interest expense, and depreciation changes in the OBBBA.

Listen as our panel of experienced tax professionals discusses the impact of the new tax law on foreign investors buying, holding, and disposing of U.S. real estate.

Presented By

Sarah E. Adkisson
Director
Eisner Advisory Group, LLC

Ms. Adkisson is the Director of Tax Publishing in the firm's National Office. With more than 10 years of tax experience, she keeps an eye towards the future and is responsible for providing updates and analysis for federal tax legislation, new regulations, and trending tax topics. Ms. Adkisson's exceptional ability to articulate complex concepts into easy-to-understand actionable insights helps strengthen the firm's effort to produce relevant and timely content. Ms. Adkisson has written multiple articles for Bloomberg Tax and various other tax publications. She has authored internal and external tax alerts and analyses and has presented on a wide range of complex tax topics in previous roles. 

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Rebeccah Fontaine
Senior Manager
Eisner Advisory Group, LLC

Ms. Fontaine is a Senior Manager in the firm's International Tax Services group. With nearly 15 years of experience, she brings a wealth of expertise in the field of International Taxation. Ms. Fontaine focuses on foreign trusts, foreign individuals, treaty analysis, expatriation and immigration planning. She is a highly skilled professional providing advanced US planning, consulting, controversy, and compliance services to international individuals and foreign trusts. Ms. Fontaine has extensive knowledge and experience in international taxation and has been honed through her previous role as a Senior Manager at a mid-sized accounting firm where she specialized in advanced planning and controversy work for large foreign trusts, foreign individuals, and foreign partnerships.

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Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

Date + Time

  • event

    Thursday, April 23, 2026

  • schedule

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

I. Overview of tax rules that apply to foreign investors in U.S. real estate

A. Income

B. FIRPTA and withholding requirements

C. Estate and gift tax

D. Income tax residency and estate/gift tax residency

E. Treaty application

II. The OBBBA's impact on foreign investments in U.S. real estate

III. New Section 163(j) business interest deduction limitation rules

IV. Portfolio interest exemption benefits

A. Deductions not subject to 163(j) limitations

B. Foreign lender not subject to tax on interest income paid by U.S. blocker corporation

C. Exemption from 30% mandatory U.S. federal withholding

D. Interaction with tax treaty provisions

V. Documentation and structuring requirements to claim the portfolio interest exemption

A. Registered obligation rules

B. W-8BEN required from the lender

C. Non-bank foreign (non-U.S.) lender

D. Exceptions to portfolio interest exemption

VI. Typical structure of blocker corporation for foreign persons or corporations to hold U.S. real property assets

VII. Planning opportunities through entity selection or change

The panel will review these and other key issues:

  • Tax implications of purchasing U.S. real estate individually or through a U.S. LLC vs. a foreign corporation, a U.S. corporation, or a trust
  • How the 163(j) business interest deduction limitation rules enhance the tax value of the portfolio interest exemption
  • Tax reporting obligations for non-U.S. owners of U.S. real estate
  • Special FIRPTA rules that apply to REITs

Learning Objectives

After completing this course, you will be able to:

  • Ascertain unique tax considerations for foreign investors in U.S. real estate
  • Discern the tax consequences of purchasing U.S. real estate through a U.S. LLC, a foreign corporation, a U.S. corporation, or individual ownership
  • Determine tax reporting obligations for non-U.S. owners of U.S. real estate
  • Identify how the 163(j) business interest deduction limitation rules enhance the tax value of the portfolio interest exemption
  • Recognize the special FIRPTA rules that apply to REITs
  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite:

    Three years+ business or public firm experience at mid-level within the organization, supervising other preparers/accountants, in tax planning and preparation of complex tax forms and schedules for foreign investors in U.S. real estate. Specific knowledge and understanding of the IRS rules governing foreign investment in U.S. real estate, familiarity with relevant taxes including: income, withholding, FIRPTA, estate and gift; and working knowledge of the tax impact of using different ownership structures including: U.S. LLC, foreign corporation, U.S. corporation, trust or individual ownership.

BARBRI, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .