Year-End Tax Changes Create Opportunities for Pension Funds and Other Foreign Investors in U.S. Real Estate

Year-End Tax Legislation: a good news/bad news story

Good: Qualifying foreign pension funds will be exempt from US tax on real estate investment income. Opportunities for foreign investors in public REITS have been expanded. Some extenders have been made permanent.

Bad: Comprehensive tax reform continues to be sorely needed, and is no closer on the horizon than it was at the beginning of the year. Patchwork fixes help, but they aren’t a substitute for structural reform.