Tax Challenges for Foreign Investors in U.S. Real Estate

Structuring Investments That Minimize Taxable Income and Capital Gains

Recording of a 110-minute premium CLE/CPE webinar with Q&A

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Conducted on Tuesday, October 2, 2012

Recorded event now available

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Course Materials

This CLE course will provide counsel with a review of 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.


The U.S. real estate market is attracting more foreign investors who see long-term opportunities in both commercial and residential property, despite the Foreign Investment in Real Property Tax Act’s withholding tax imposed on the transfer of U.S. real estate by non-resident aliens.

Tax counsel for foreign investors must balance a variety of tax consequencesincluding U.S. income, capital gains and estate taxesto determine the appropriate ownership vehicle for U.S. property, whether U.S. LLC or corporation, foreign corporation, or individual ownership.

In addition to entity selection, there are tax planning opportunities in structuring the deal, including the use of 1031 exchanges.

Listen as our panel of tax practitioners discusses tax consequences for foreign investments in U.S. real estate and strategies for determining the appropriate investment entity as well as structuring the deal.



  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. U.S. capital gains rate
    3. U.S. estate tax
    4. FIRPTA
  3. Tax strategies for structuring the deal
    1. 1031 exchange
    2. Tiered entities
    3. Other strategies


The panel will review these and other key questions:

  • What are the benefits of owning U.S. real estate in an individual capacity?
  • What tax consequences are involved in purchasing U.S. real estate via a U.S. LLC?
  • How can the foreign investor leverage the 1031 exchange in purchasing U.S. real estate?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.


Alan I. Appel
Alan I. Appel

Bryan Cave

Mr. Appel focuses his practice in international and domestic tax planning involving taxation of mergers and...  |  Read More

Richard Lehman
Richard Lehman

Lehman Tax Law

He has practiced in South Florida for more than 38 years, primarily on various international and domestic commercial...  |  Read More

Amy Jetel
Amy Jetel
Beckett Tackett & Jetel

Her practice emphasizes designing, implementing and administering outbound and inbound foreign trust and entity...  |  Read More

Datan Z. Dorot
Datan Z. Dorot

Dorot & Bensimon

Mr. Dorot's client experience covers a wide range of international and domestic estate and business planning, and...  |  Read More

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