Structuring Foreign Investment in U.S. Real Estate: Entity Selection and Transaction Structures

Navigating FIRPTA, Determining Individual vs. Entity Ownership Structures, Achieving Optimal Tax Treatment Through Blocker Corps

Recording of a 90-minute CLE/CPE webinar with Q&A


Conducted on Wednesday, July 12, 2017

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will provide tax counsel with a thorough and practical guide to structuring strategies and tax considerations for foreign investors in U.S. real estate, outline best practices for determining the purchasing entity, and review tax planning opportunities in structuring the deal.

Description

The United States remains the most popular destination for foreign real estate capital investment. Critical for tax and investment advisors representing non-U.S. persons investing in U.S. real property is a comprehensive examination of optimal structures for the ownership vehicle and the mechanics of the purchase transaction itself.

For income and transfer tax purposes, foreign investors must balance a variety of tax issues to determine the appropriate ownership vehicle for U.S. property. Various ownership structures, whether direct ownership by a non-U.S. person or use of a foreign or domestic corporation, trust or partnership, each have particular tax consequences for the foreign owner. In addition to entity selection, there are various opportunities and pitfalls in structuring the purchase transaction. Because real estate investment is a highly tax-driven activity, counsel must be well-versed in the tax consequences of various transactions as well as entity structures plus the related tax compliance requirements.

Listen as our panel of tax practitioners goes beyond the basics to provide a comprehensive and practical guide to structuring foreign investment in U.S. real estate, from ownership profile through finalizing the real estate deal.

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Outline

  1. Investment structure alternatives
    1. Individual ownership
    2. Ownership via U.S. LLC
    3. Ownership via foreign corporation
    4. Ownership via U.S. corporation
    5. Other entity structures
  2. Tax consequences for investment structures
    1. U.S. income tax
    2. S. capital gains rate
    3. S. estate tax
    4. FIRPTA
  3. Tax strategies for structuring the deal
    1. 1031 exchange
    2. Tiered entities
    3. Other strategies

Benefits

The panel will review these and other key issues:

  • What are the various tax consequences of a foreign person owning U.S. real estate in an individual capacity?
  • What is the impact of blocker corporations and other intermediary entities on tax treatment of foreign investment in U.S. real estate?
  • How can the foreign investor leverage the 1031 exchange in purchasing U.S. real estate?

Faculty

Richard S. LeVine
Richard S. LeVine

Of Counsel
Withers Bergman

Mr. LeVine's practice focuses on cross-border estate, gift and income tax planning for owners of privately held...  |  Read More

Lawrence M. Lipoff, CPA, TEP, CEBS
Lawrence M. Lipoff, CPA, TEP, CEBS
Director
CohnReznick

With more than 30 years of experience, Mr. Lipoff specializes in the delivery of domestic and international private...  |  Read More

Brian Oard
Brian Oard

Wealth Manager
Northern Trust

As Senior Wealth Strategist for Northern Trust, Mr. Oard works with individuals and families to identify and quantify...  |  Read More

Louis Zuckerbraun
Louis Zuckerbraun
Managing Director, Insurance
GMG Financial Group

Mr. Zuckerbraun's focus is on private placement life insurance. He was previously co-CEO of a Swiss Life and...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

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