Navigating FIRPTA and Its Exceptions, Section 892 and REIT Investment Structures to Obtain Favorable Tax Outcomes for Investors

A live 90-minute CLE/CPE webinar with interactive Q&A

Thursday, May 14, 2015

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, April 17, 2015

This CLE webinar will provide real estate attorneys and tax counsel with a review of tax considerations for foreign investors in U.S. REITs. The speaker will address tax challenges for foreign investors as well as the funds seeking investments from overseas and will include a discussion of FIRPTA, the FIRPTA exceptions for domestically controlled and publicly traded REITs, Section 892 for sovereign wealth funds and foreign governments, and various REIT structures to optimize tax structures for investors.

Description

According to the Association of Foreign Investors in Real Estate, the U.S. is currently the leading country for real estate investments with 81% of the respondents looking to increase investments in 2015. REITs are a very popular and generally tax-efficient vehicle for foreign investments, particularly for foreign institutional investors, pension plans and sovereign wealth funds.

When REITs dispose of U.S. real property the gain is generally taxable to the foreign investor under FIRPTA. In addition, tax withholding obligations can be triggered. FIRPTA tax can be avoided. however, if the fund or investor can take advantage of FIRPTA exceptions including those for domestically controlled and publicly traded REITs.

REITs seeking to attract foreign investors must exercise due diligence in how their fund is organized and how the foreign investment is structured to achieve the most favorable tax outcomes for its investors .

Listen to our authoritative speaker discuss tax challenges for foreign investors in U.S. REITs, including an in-depth analysis of FIRPTA, the FIRPTA exceptions for domestically controlled and publicly traded REITs, Section 892 for sovereign wealth funds and foreign governments and various REIT structures to maximize favorable tax outcomes for investors.

Outline

Tax advantages of REITs as vehicles for foreign investments vs. partnerships and C corps

Benefits

The panelist will cover these and other key issues:

• What tax advantages do REITs have compared with partnerships and C corps?
• What is the tax treatment of distribution from REITs and what are the requirements to meet FIRPTA exceptions to optimize tax outcomes for foreign investors?
• What are some of the more common REIT investment structures that can be utilized to achieve favorable tax outcomes for foreign investors?

After completing this course, you will be able to identify tax considerations for foreign investors in U.S. REITs as well as the funds seeking investments from overseas. You will obtain knowledge of FIRPTA, the FIRPTA exceptions for domestically controlled and publicly traded REITs, Section 892 for sovereign wealth funds, and various REIT structures to maximize favorable tax outcomes for investors.

Faculty

Robert J. Le Duc. Co-Chair, National REIT Tax Practice