Media Coverage
Source: Law360
Media Coverage
03.31.14
With an increase in foreign investment in U.S. real estate, foreign investors, sellers and rival bidders should be cautious of potential tax hurdles, differences in deal-making styles and other cultural customs.
Dana Newman, a partner in Pillsbury’s Los Angeles tax practice, explained that foreign investors could be subjected to tax on interest, leases or dividends, which could impact how property ownership is structured.
Getting the money back out of the U.S. after it's invested in a property here without paying a disproportionate amount of sales tax can also be a major hurdle, Newman said. “The overall issue is tax planning for a foreign investor to maximize their ability to get profits free of U.S. income taxes.”