The two senators say they are trying to ease regulations that crowd out foreign investment into the commercial real estate market, by taxing overseas capital gains in domestic property holdings.
More specifically, the measure would double, from 5 percent to 10 percent, the amount of shares foreign investors can hold in public companies before owing taxes under the Foreign Investment in Real Property Tax Act (FIRPTA).
Business groups have called for the easing, or even the repeal, of FIRPTA for some time, saying that IRS rules issued in recent years broadened its scope considerably.
A bill including FIRPTA reforms passed during the last Congress. In the House, Reps. Kevin BradyKevin BradyGOP chairman: Tax reform will repeal limit on church political activity How to marry housing policy and tax reform for millions of Americans CPAC highlights include Trump, Pence MORE (R-Texas) and Joe Crowley (D-N.Y.) have pushed the IRS to treat distributions of certain real estate trusts as sale of stock, rather than making them subject to FIRPTA.
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