USRPIUnited States Real Property Interests
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1445(c)(1)(A), the amount of tax required to be withheld cannot exceed the transferor's maximum tax liability for the transfer of a USRPI, as determined by the IRS.
14) Under the FIRPTA regime, an NRA or foreign corporation that disposes of a USRPI must recognize gain or loss as if it is ECI and is subject to U.
There is no significant trading of USRPI through offshore transactions, so there is no readily available opportunity for tax avoidance by using them.
real property holding corporation, the term USRPI means an interest, other than an interest solely as a creditor, in a foreign corporation unless it is established that the foreign corporation is not a U.
897-7T, an interest in a partnership may also be considered to be a USRPI to the extent that the partnership owns USRPI.
9) When withholding is required, the buyer of the USRPI generally must deduct and withhold 15 percent of the purchase price.
897(g) to clarify how to determine what is attributable to a USRPI when a partnership owns both USRPIs and non-USRPIs.
Upon disposition of USRPI, the withholding tax does not excuse the foreign investor to file U.
One of the exceptions permits a foreign corporation which disposes of a USRPI to make an election to be treated as a domestic corporation for withholding tax pu rposes.
1445 (a) imposes a 10% withholding tax on the gross amount realized on a disposition of a USRPI by a foreign person.
Under this provision, any gain recognized by a foreign person on the disposition of a USRPI will be treated as if such gain were ECI and, therefore, subject to U.
897, which treats gain or loss from the disposition of a USRPI as effectively connected gain or loss, does not change the capital asset character of the USRPI itself.