Foreign Investment in U.S. Real Property: Complying with FIRPTA and Using 1031 Exchanges

This article discusses basics that need to be considered when advising foreign clients who are planning to dispose of their U.S. real property and must comply with the provisions of the Foreign Investment in Real Property Tax Act of 1980. According to the author, tax consequences occur only when that foreign person disposes of the U.S. real property interest. He also explains that a foreign seller is entitled to defer recognizing a gain on the sale of real property by exchanging it for another real property.