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


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.

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?

Learning Objectives

After completing this course, you will be able to:

  • Identify various ownership structures and related tax consequences for foreign investors in U.S. real estate
  • Determine the optimal purchasing entity for a foreign investor in U.S. real estate
  • Ascertain tax planning opportunities in structuring a deal involving foreign investment in U.S. real estate

Faculty

Richard S. LeVine, Of Counsel
Withers Bergman, New Haven, Conn.

Mr. LeVine's practice focuses on cross-border estate, gift and income tax planning for owners of privately held companies and other high-net-worth U.S. and foreign individuals. He counsels clients on pre-immigration and pre-expatriation tax planning, offshore trusts and foundations deferred compensation planning for fund manager and structures involving life insurance. He has been heavily involved in advising clients on the IRS Voluntary Disclosure programs.

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

With more than 30 years of experience, Mr. Lipoff specializes in the delivery of domestic and international private client services to enable high net worth individuals and families to maximize their new or generational wealth. He provides strategic advice to his clients and their closely-held businesses in the areas of income tax planning and compliance, estate planning and administration services, consultation regarding formation of family trusts and philanthropic structures. He is a frequent lecturer and author of articles published through professional forums on topics that include preparation of 1040/1041 & 706/709 returns, IRA/pension distribution, domestic and international asset protection, business succession, generation-skipping transfers, S corporation and fiduciary taxation including foreign trusts, alternative minimum tax, Chapter 14, family limited partnerships, international estate planning and administration, grantor charitable lead trusts, captive insurance companies, private placement life insurance and carried interest estate planning for private equity and hedge fund principals.

Brian Oard, Wealth Manager
Northern Trust, Los Angeles

As Senior Wealth Strategist for Northern Trust, Mr. Oard works with individuals and families to identify and quantify their goals. He helps to develop strategies in conjunction with their existing advisers to manage their wealth from a multi-generational perspective. He is accountable for making sure that clients receive the full benefit of Northern’s investment and wealth management capabilities.

Louis Zuckerbraun, Managing Director, Insurance
GMG Financial Group, Zurich, Switzerland

Mr. Zuckerbraun's focus is on private placement life insurance. He was previously co-CEO of a Swiss Life and Annuity company that provided traditional life, savings and annuity products to Swiss and International clients. He was a Managing Director and one of the founding partners of the Crown Global group of insurance Companies in Bermuda, Grand Cayman and Delaware, which provides complex insurance based solutions for high net worth clients worldwide. His primary responsibilities included insurance product development, overall management of the insurance companies and direct profit and loss accountability.


EA Credit

Enrolled Agent credit processing is available for an additional fee per person.

EA Processing $5.00


Recordings

CLE On-Demand - Streaming Video

Note: Self-study CPE and EA credits are not offered on this On-Demand webinar.

Includes recorded streaming video of full program plus PDF handouts.

On-demand is the only recorded format recognized for CLE credits in DE, IN, KS, LA, MS, NC, OH, OK, SC, TN, VA, WI.

AK, AZ, CA, CO, CT, DE, FL, GA, HI, IA, ID, IL, IN*, KS, KY, LA, ME, MN, MO, MT, NC, ND, NH**, NJ, NM, NV, NY, OH*, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WV, WY (Note: Some states restrict CLE eligibility based on the age of a program. Refer to our state CLE Map for additional information.)

*Only available for attorneys admitted for more than two years. For OH CLE credits, only programs recorded within the current calendar year are eligible - contact the CLE department for verification.

**NH attendees must self-determine if a program is eligible for credit and self-report their attendance.

CLE On-Demand Video $297.00

How does this work?


Recorded Event

Includes full event recording plus handouts.

Note: Self-study CPE and EA credits are not offered on recorded events.

Strafford is an approved provider and self-study CLE credit is available in most states.

AK, AZ, CA, CO, CT, FL, GA, HI, IA, ID, IL, KY, ME, MN, MO, MT, ND, NJ, NM, NY, OR, PA, TN, TX, UT, VT, WA, WV, WY (Note: Some states restrict CLE eligibility based on the age of a program. Refer to our state CLE Map for additional information.)

Strafford will process CLE credit for one person on each recording.

Additional copies of a recording can be purchased at a discount. Please call Strafford Customer Service toll-free at 1-800-926-7926 ext 10 or email customerservice@straffordpub.com to place your order.

Recorded Webinar Download $297.00

How does this work?

Recorded Audio Download (MP3) $297.00

How does this work?


NASBA CPE Sponsor

National Registry of CPE Sponsors

Strafford Publications, 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 credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

IRS Approved Provider

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

Program Materials

Requires Adobe Reader 8 or later. Download Acrobat FREE.

Program Materials

Requires Adobe Reader 8 or later. Download Acrobat FREE.

or call 1-800-926-7926

CLE Credits

Many states grant CLE credits for on-demand streaming audio programs and recorded events. Our programs are pre-approved in many states. Refer to our state CLE map for state-specific information.

or call 1-800-926-7926

CPE Credit

Strafford is a NASBA CPE sponsor and our live webinars qualify for CPE credits. They offer you a high quality, cost effective, and convenient CPE option, with no lost travel time or expenses.

or call 1-800-926-7926

Customer Reviews

I was pleased with the in-depth, comprehensive coverage of a fairly narrow but important set of issues.

Patricia L. Chapman

Gleaves Swearingen

I like that the webinar was easy to access and offered good presenters and written materials.

Kathryn Spillers

Greenberg Glusker

Very clearly presented and very practical advice.

Winthrop Rutherfurd, Jr.

White & Case

I liked that the speakers' explanations of the materials were easy to follow.

Ross Cohen

Greenebaum, Doll & McDonald

The seminar was given in a very user friendly presentation format.

Danielle Burns

Duane Morris

or call 1-800-926-7926

Tax Law Advisory Board

Robert S. Barnett

Partner

Capell Barnett Matalon & Schoenfeld

William H. Byrnes

Associate Dean, Special Projects

Texas A&M University Law

Robert A.N. Cudd

Senior Partner

Polsinelli

Patrick Derdenger

Tax Partner

Steptoe & Johnson

Janice Eiseman

Principal

Cummings & Lockwood

Lynn Fowler

Partner

Kilpatrick Townsend & Stockton

Edward Froelich

Of Counsel

Morrison & Foerster

Daniel L. Gottfried

Partner

Hinckley Allen

J. Leigh Griffith

Partner and Practice Group Leader - Tax

Waller Lansden Dortch & Davis

L. Andrew Immerman

Partner

Alston & Bird

Mark S. Lange

Partner

BakerHostetler

Joseph C. Mandarino

Partner

Smith Gambrell & Russell

Lori Mathison

Partner, Cross-Border Transactions Tax

Fraser Milner Casgrain

Christian M. McBurney

Partner

Arent Fox

Suzanne Ross McDowell

Partner, Tax-Exempt Organizations

Steptoe & Johnson

Todd Reinstein

Partner, Corporate Tax and Due Diligence

Pepper Hamilton

Alex Sadler

Partner

Morgan Lewis

Susan Seabrook

Shareholder

Buchanan Ingersoll & Rooney

Peter Stathopoulos

Managing Director, State and Local Tax Practice

Bennett Thrasher

Eric Tresh

Partner & Co-Chair, State & Local Tax Practice

Sutherland Asbill & Brennan

Amanda Wilson

Shareholder

Lowndes Drosdick Doster Kantor & Reed

or call 1-800-926-7926

Our Guarantee

Strafford webinars 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. For more information regarding complaints and refunds, please contact us at 1-800-926-7926 ext 10. Complaints regarding this program can be submitted via the course evaluation found in the “Thank you” e-mail at the end of the course.