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Pending Tax Legislation’s Effect on Timing the Sales of Real Estate by Foreign Investors in U.S Real Estate (FIRPTA)
Under the pending legislation in Congress, the House of Representatives has passed legislation to reduce the corporate income tax rate from 35% to 20% effective January 1, 2018. The Senate tax bill reduces the corporate income tax rate from 35% to 20% but the effective date is one full year later on January 1, 2019. For…
Read MoreForeign Investment in Real Property Tax Legislation May Come in the Form of a Tax Bill
Those looking for Congress to pass lots of foreign investment tax legislation in the next year will likely be disappointed. But the tax reform effort that Republicans are currently brewing in Washington, while not aimed squarely at foreign investors, could have a huge impact. Tax reform could be very beneficial for non-U.S. investors, particularly those…
Read MoreFour Questions a Non-US Person Must Ask Before Investing in US Real Estate
Historically, U.S. real estate has been a solid investment for non-U.S. persons, both as a diversification strategy and for pure returns. But the tax consequences can be severe if not structured properly. Investment in U.S. Real Estate by a non-U.S. person can lead to rates north of 50 percent for those who do not plan…
Read MoreThe Basics of FIRPTA Law
The Foreign Investment in Real Property Tax act, universally called FIRPTA, is a complicated piece of tax law that applies to foreign companies and investors when they sell real estate investments in the United States.
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