MWE Partner Steven Schlachter, MBA, CPA, recently spoke to Real Estate Finance & Investment about two timely issues: Foreign Investment in Real Property Tax Act (FIRPTA) Fairness and the potential British exit from the European Union.
Foreign Investment in Real Property Tax Act (FIRPTA) Fairness:
“Some domestic investors are saying, ‘If I make a real estate investment and have to pay tax on the return, why is it fair that the pension investor I’m competing with is not from the U.S. and can bid higher on a property without being taxed on the exit?’ – From an economic standpoint, more money pouring into U.S. commercial real estate could lead to more jobs being created and more services being provided. This is an election year, so we’re not expecting anything major to happen this year, but going forward, I think the debate in Washington will be whether FIRPTA is disadvantaging investors or whether it is an advantage because it’s bringing more money into the U.S.” Read More>>
The potential British exit from the European Union:
“I believe London in particular is considered a safe haven investment market just like New York, and the U.K.’s potential exit from the E.U. will give a lot of investors pause. There will be concern over what kind of economic impact this could have, particularly for people who invest in the U.K. and whether the move, if it happens, will result in bad blood or if it will be a smooth transition.” Read More>>
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