Real Estate Investment Funds

Wade Wilson, CPA

Wilson LLP is excited to announce its membership in the Netherlands American Chamber of Commerce | Southeastern United States this past month.  As a firm we hope to make new friends and connect with both U.S. companies doing business with the Netherlands as well as Netherlands based organizations doing business here in the United States.

Here is a link to their website, Netherlands American Chamber of Commerce | Southeastern United States

Wade Wilson, CPA

On May 1, 2012 Governer Deal signed into law, House Bill 965 changing the withholding requirements on nonresidents effective for tax years beginning on or after January 1, 2012.  Previously, Georgia allowed withholding on distributions paid or credited to partners who are nonresidents of Georgia (including nonresident alien partners).  The law has been modified so that withholding is now determined based on the partner's share on taxable income sourced to the state.  The withholding tax rate is still 4 percent.

Julie Armstrong, CPA

In the third and final part of this series, we discuss the ramifications of disposing of an investment in a U.S. real estate fund.  Part 1, Investing in a Closed-End Real Estate Fund, discussed the initial investment in U.S. real estate, while Part 2, Annual Income Tax Return Requirements for Nonresident Aliens Invested in U.S. Closed-End Real Estate Funds discusses the annual filing requirements associated with your investment.  While the same general principals apply to any disposition of any U.S. real estate, we will focus on the disposition of investment held via a partnership interest. 

Ashley Erwin, CPA

In the second part of this series, we discuss the U.S. tax filing requirements of a nonresident alien investor, and the various steps an investor needs to take in order to have a complete tax return. We also discuss the process of authorizing a CPA firm to handle an investor's tax return, and an overview of the various other forms associated with the U.S. Nonresident Alien Income Tax Return.

Mary Ann Rosenberg, CPA

With strong performance in 2011, closed-end real estate funds still offer an attractive way for the foreign investor to invest in U.S. real estate.  Foreign investors considering investing in a closed-end fund have a complex set of rules to learn and several steps to follow to ensure they are properly complying with U.S. tax law.   In this article , the first of a three-part series, we hope to provide a helpful guideline for the foreign investor, with a general overview of what a closed-end fund is, a summary of  U.S. tax law, and a list of the steps that the investor needs to take to comply with U.S. tax law.

Situation

A Real Estate Fund, which had invested in several properties in New York and California, was in the process of liquidating. The partnership consisted of approximately 4000 taxable and
tax-exempt partners. Because the Fund was liquidating, they needed high quality tax services, while facing cost reductions and staff shortages.