FIRPTA Reform Gains Traction

Last week, the House introduced H.R. 2989 – Real Estate Jobs and Investment Act of 2011 - which would significantly overhaul the REIT FIRPTA tax.  If passed, the bill would facilitate foreign investment in U.S. REITs by expanding the FIRPTA exemption for foreign investors in publicly traded REITs.  Currently, foreigners with 5% or less of publicly traded companies are exempt from FIRPTA upon the disposition of stock or, in the case of a REIT, receipt of a capital dividend.  The proposed legislation would increase exemption to shareholders owning 10% or less of a publicly traded REIT.  Text of the bill can be found here.   

Aninda Dhar is a Senior Tax Manager with extensive experience in federal and international tax matters. Aninda provides tax consulting services to entities in numerous industries and serves a diverse roster of clients.

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