Details

  • Service: Tax, Inbound Investments
  • Industry: Investment Management, Building, Construction & Real Estate
  • Date: 9/15/2011

FATCA and U.S. real estate funds: Why you should care and what you can do now 

This paper looks at the various implications that FATCA will have on real estate funds, including commercial and reputational risk, as well as the need for an implementation plan to address the key areas of risk.
FATCA achieves its goals by requiring certain foreign entities to disclose their U.S. investors to IRS. The regime may seriously impact a foreign entity investor’s after-tax returns if either the fund or that investor does not comply. With a phased implementation schedule of January 1, 2013 – January 1, 2015, all existing U.S. real estate funds with foreign investors, as well as those that will rely on foreign investors for capital in new funds, will need to consider now how FATCA will impact their business.