Facilitating Foreign Business Investment In The United States
The tax attorneys of Goldburd McCone LLP take great pride in the planning we perform for foreign investors seeking to operate in the United States. We can advise on entity selection, structuring of transactions to mitigate tax burdens and evaluation of operational alternatives.
Our U.S.-bound business and tax planning allows foreign clients the peace of mind that their endeavor is handled in a thorough and strategic manner so that their transaction or U.S. operation will be compliant and efficient on day one.
Sophisticated Tax Counsel For Foreign Investors
Goldburd McCone LLP provides comprehensive advice to foreign individuals and companies embarking on U.S. ventures. Our services include:
- Compliance with FIRPTA tax withholding on investments in U.S. real property
- Guidance to foreign hedge funds and private equity funds investing in U.S. real estate
- Structuring of investment vehicles to reduce tax exposure
- Assisting business and companies entering the U.S. for tax purposes and compliance
- General tax structuring strategies and tax planning
Anticipating FIRPTA Implications Of Real Property Transactions
Under the Foreign Investment in Real Property Tax Act (FIRPTA), foreign persons or corporations are liable for U.S. income tax on sale or disposition of real property in the United States. To ensure those taxes are captured, the buyer or agent is required to withhold 15 percent of the realized amount.
We advise foreign persons (nonresident individuals or foreign corporations) on FIRPTA planning and compliance in relation to sale, 1031 exchanges, gifts, transfers and other dispositions of U.S. real property. “Real property interest” applies to investment in (a) real estate holding corporations, (b) residences and other structures, and (c) land and natural resources. We also counsel U.S counterparts in foreign investments and transactions, such as the purchase of real property in the U.S. from a foreign owner.
Under FIRPTA, the real property transferee (buyer/agent) is responsible for withholding income taxes. Failure to collect and pay taxes on foreign investments is subject to significant IRS penalties and likely to invite broader IRS scrutiny of operations and transactions. We assist with everything, including proper filing of 1050NR nonresident alien tax returns. We can also advise on exceptions to FIRPTA withholding, obtaining IRS withholding certificates to withhold less than the presumptive 15 percent, and filing for FIRPTA refunds.
Schedule A Consultation With Our Tax Planning Lawyers
Goldburd McCone LLP extends an initial consultation to foreign investors seeking to do business In the United States. We have worked with clients all over the globe. Please call our New York City and Long Island law office at 212-235-1817 or contact us by email to make arrangements.