New Legislation Relating To The Taxation Of REITs And Foreign Investment In U.S. Real Property

Winter/Spring
Real Estate Finance Journal
President Obama recently signed into law the Consolidated Appropriations Act, 2016 (the “Act”). The Act includes significant changes to the application of the Foreign Investment in Real Property Tax Act of 1980 (“FIRPTA”) and the taxation of spin-off transactions involving real estate investment trusts (“REITs”), in addition to provisions that extend (in many cases on a permanent basis) a significant number of popular tax breaks set to expire.