Foreign Investment in U.S. Real Estate-Think About Taxes Before Investing

摘要

Foreign investors in U.S. real estate or mortgage debt face the specter of U.S. income taxes, as well as estate and gift tax exposure, not to mention state and local taxes. Even after the Foreign Investment in Real Property Tax Act, however, with careful planning foreign investors can limit-or possibly avoid-U.S. tax liability. This article provides an overview of the applicable tax law and then outlines a number of acquisition structures that may materially improve a foreign investor's post-tax return from investment in the U.S.