Fussing Over FIRPTA
The New York Observer reports: With investment markets still hamstrung, foreign investors in commercial real estate are finding new support in policy circles. As part of its 2009 policy agenda, the Real Estate Roundtable, based in Washington, D.C., includes among its key objectives revisions to the 1980 Foreign Investment in Real Property Tax Act (FIRPTA). Under the provisions of FIRPTA, foreign entities are subject to taxes on gains from the sale of U.S. real estate assets.
According to Real Capital Analytics, just 10% of U.S. properties are purchased by cross-border entities. This contrasts with more than 20% for Japan and China, more than 40% for the United Kingdom and just under 60% for Germany. Parsing the latest data and current developments in Washington, Dr. Sam Chandan, Global Chief Economist at RCA, believes that foreign investment in U.S. market has the potential to grow substantially over the next few years, even if FIRPTA remains in place.
View the full article on The New York Observer: Fussing Over FIRPTA
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Posted by: Matthew Stone