26 USC 6039C - Returns with respect to foreign persons holding direct investments in United States real property interests

U.S Code last checked for updates: May 05, 2024

§ 6039C.

Returns with respect to foreign persons holding direct investments in United States real property interests

(a)

General rule

To the extent provided in regulations, any foreign person holding direct investments in United States real property interests for the calendar year shall make a return setting forth—

(1)

the name and address of such person,

(2)

a description of all United States real property interests held by such person at any time during the calendar year, and

(3)

such other information as the Secretary may by regulations prescribe.

(b)

Definition of foreign persons holding direct investments in United States real property interests

For purposes of this section, a foreign person shall be treated as holding direct investments in United States real property interests during any calendar year if—

(1)

such person did not engage in a trade or business in the United States at any time during such calendar year, and

(2)

the fair market value of the United States real property interests held directly by such person at any time during such year equals or exceeds $50,000.

(c)

Definitions and special rules

For purposes of this section—

(1)

United States real property interest

(2)

Foreign person

(3)

Attribution of ownership

For purposes of subsection (b)(2)—

(A)

Interests held by partnerships, etc.

(B)

Interests held by family members

(4)

Time and manner of filing return

(d)

Special rule for United States interest and Virgin Islands interest

A nonresident alien individual or foreign corporation subject to tax under section 897(a) (and any person required to withhold tax under section 1445) shall pay any tax and file any return required by this title—

(1)

to the United States, in the case of any interest in real property located in the United States and an interest (other than an interest solely as a creditor) in a domestic corporation (with respect to the United States) described in section 897(c)(1)(A)(ii), and

(2)

to the Virgin Islands, in the case of any interest in real property located in the Virgin Islands and an interest (other than an interest solely as a creditor) in a domestic corporation (with respect to the Virgin Islands) described in section 897(c)(1)(A)(ii).

(Added Pub. L. 96–499, title XI, § 1123(a), Dec. 5, 1980, 94 Stat. 2687; amended Pub. L. 97–34, title VIII, § 831(a)(3), (e), Aug. 13, 1981, 95 Stat. 352, 354; Pub. L. 98–369, div. A, title I, § 129(b)(1), July 18, 1984, 98 Stat. 659; Pub. L. 99–514, title XVIII, § 1810(f)(7), Oct. 22, 1986, 100 Stat. 2828.)

cite as: 26 USC 6039C