26 U.S.C. § 6039C — Returns with respect to foreign persons holding direct investments in United States real property interests
submitted 46 years ago by Pub. L. 96-499 to r/title-26-INTERNAL-REVENUE-CODE · 448 words · no verdicts yet
This section requires certain foreign persons holding sufficiently large direct investments in United States real property to file returns. It defines the covered persons and interests and assigns filing and tax payments between the United States and the Virgin Islands.
(a) To the extent regulations require, a foreign person holding direct investments in United States real-property interests during a calendar year must report the person's name and address, every such interest held at any time during the year, and other required information. (b) This applies if the person did not conduct a United States trade or business* during the year and the fair market value of directly held United States real-property interests reached at least $50,000. (c)(1) “United States real property* interest” has the meaning in section 897(c). (2) “Foreign person” means a person who is not a United States person*. (3)(A) Partnership*, trust, and estate interests are attributed proportionally to partners or beneficiaries. (B) Interests held by an individual's spouse or minor child are treated as held by that individual. (4) Returns are due in the time and manner regulations prescribe. (d) A nonresident alien or foreign corporation* taxed under section 897(a), and anyone required to withhold under section 1445, pays the tax and files the return required by this title to the United States for United States real-property interests and the specified domestic-corporation interest, and to the Virgin Islands for the corresponding Virgin Islands interests.
To the extent provided in regulations, any foreign person holding direct investments in United States real property* interests for the calendar year shall make a return setting forth—
the name and address of such person,
a description of all United States real property interests held by such person at any time during the calendar year, and
such other information as the Secretary* may by regulations prescribe.
For purposes of this section, a foreign person shall be treated as holding direct investments in United States real property interests during any calendar year if—
such person did not engage in a trade or business* in the United States at any time during such calendar year, and
the fair market value of the United States real property interests held directly by such person at any time during such year equals or exceeds $50,000.
For purposes of this section—
The term “United States real property interest” has the meaning given to such term by section 897(c).
The term “foreign person” means any person who is not a United States person*.
For purposes of subsection (b)(2)—
United States real property interests held by a partnership*, trust, or estate shall be treated as owned proportionately by its partners or beneficiaries.
United States real property interests held by the spouse or any minor child of an individual shall be treated as owned by such individual.
All returns required to be made under this section shall be made at such time and in such manner as the Secretary shall by regulations prescribe.
A nonresident alien individual or foreign corporation* subject to tax under section 897(a) (and any person required to withhold tax under section 1445) shall pay any tax and file any return required by this title—
to the United States, in the case of any interest in real property located in the United States and an interest (other than an interest solely as a creditor) in a domestic corporation (with respect to the United States) described in section 897(c)(1)(A)(ii), and
to the Virgin Islands, in the case of any interest in real property located in the Virgin Islands and an interest (other than an interest solely as a creditor) in a domestic corporation (with respect to the Virgin Islands) described in section 897(c)(1)(A)(ii).
Source credit: (Added Pub. L. 96–499, title XI, § 1123(a), Dec. 5, 1980, 94 Stat. 2687; amended Pub. L. 97–34, title VIII, § 831(a)(3), (e), Aug. 13, 1981, 95 Stat. 352, 354; Pub. L. 98–369, div. A, title I, § 129(b)(1), July 18, 1984, 98 Stat. 659; Pub. L. 99–514, title XVIII, § 1810(f)(7), Oct. 22, 1986, 100 Stat. 2828.)
- 1980Enacted · Pub. L. 96-499 · 94 Stat. 2687
- 1981Amended · Pub. L. 97-34 · 95 Stat. 352, 354
- 1984Amended · Pub. L. 98-369 · 98 Stat. 659
- 1986Amended · Pub. L. 99-514 · 100 Stat. 2828
A history note hasn’t been published yet. The record shows enactment by Pub. L. 96-499 on 1980-12-05.
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