Proposed Legislation Permits Foreign Shareholders to Own Increased Percentage of Domestic REITs Without Becoming Subject to FIRPTA

The US House of Representatives has passed the Real Estate Jobs and Investment Act of 2010. If it becomes law, this legislation would amend Section 897 of the Internal Revenue Code of 1986, as amended, which was enacted as part of the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), and would modify certain rules that currently apply to foreign investors that own stock of domestic real estate investment trusts (REITs).