Before convening on its August break, the House of Representatives passed the Real Estate Jobs and Investment Act of 2010. The bill advances the real estate industry’s goal of increasing foreign investment in Real Estate Investment Trusts (REIT). The Bill doubles foreign investors’ allowable ownership interest in a REIT to 10%. Anything over that percent ownership is then subject to the Foreign Investment in Real Property Tax Act (FIRPTA). Congress hopes that increasing the allowable foreign ownership interest will stimulate the US commercial real estate sector with minimal fiscal impact.
Tisha Black Chernine, Esq.