Insights & Publications
Diversity & Inclusion
© 2019 Debevoise & Plimpton LLP
New Legislation Relating to the Taxation of REITs and Foreign Investment in U.S. Real Property
22 December 2015
View Client Update
On December 18, President Obama approved the Consolidated Appropriations Act, 2016 (the “Act”), which provides several significant exemptions from U.S. federal income tax for certain non-U.S. persons investing in U.S. real property. In particular, the Act exempts non-U.S. pension plans from tax under the U.S. “FIRPTA” rules, allowing such plans to invest in U.S. real property in a more tax-efficient manner.
The Act also provides new rules intended to curtail tax-free spin-off transactions in which an operating business transfers real estate holdings into one or more REITs. These rules are generally effective for any spin-off distribution occurring on or after December 7, 2015, unless it is the subject of an outstanding IRS ruling request.
The Act makes a number of technical changes to rules that are generally applicable to REITs and extends many expiring tax provisions.
Real Estate Funds
Peter A. Furci
UK Modern Slavery Act Transparency Statement
Debevoise Women's Review