Foreign Investments in U.S. REITs: Tax Challenges for Investors and Funds Seeking Foreign Capital
Navigating FIRPTA and Its Exceptions, Section 892 and REIT Investment Structures to Obtain Favorable Tax Outcomes for Investors
Recording of a 90-minute premium CLE/CPE webinar with Q&A
This CLE course will provide real estate attorneys and tax counsel with a review of tax considerations for foreign investors in U.S. REITs. The speaker will address tax challenges for foreign investors as well as the funds seeking investments from overseas and will include a discussion of FIRPTA, the FIRPTA exceptions for domestically controlled and publicly traded REITs, Section 892 for sovereign wealth funds and foreign governments, and various REIT structures to optimize tax structures for investors.
Tax advantages of REITs as vehicles for foreign investments vs. partnerships and C corps
- Tax treatment of distribution by REITs
- Ordinary income: REIT dividends
- Capital gains: FIRPTA
- FIRPTA exceptions
- Domestically controlled REITs
- Publicly traded REITs
- IRS Notice 2007-55
- Section 892 for sovereign wealth funds and foreign governments
- REIT investment structures
- REITs as blockers
- Parent and subsidiary REITs
- Leveraged blocker structures
- REIT due diligence
- Proposed REIT and FIRPTA legislation
The panelist will cover these and other key issues:
- What tax advantages do REITs have compared with partnerships and C corps?
- What is the tax treatment of distribution from REITs and what are the requirements to meet FIRPTA exceptions to optimize tax outcomes for foreign investors?
- What are some of the more common REIT investment structures that can be utilized to achieve favorable tax outcomes for foreign investors?
Robert J. Le Duc
Co-Chair, National REIT Tax Practice
Mr. Le Duc has extensive experience in the real estate and mortgage-related areas, including representation of real... | Read More
Mr. Le Duc has extensive experience in the real estate and mortgage-related areas, including representation of real estate funds, debt funds, and publicly traded and privately owned equity and mortgage REITs. He structures debt and equity offerings, REIT mergers and acquisitions, formations of private REITs, partnership roll-ups and various mortgage REIT transactions. He provides tax advice regarding numerous cross border real estate investments and cross border financing transactions, with particular focus on advising non-US governmental investors.Close