Internal Revenue Code:Sec. 6039C. Returns with respect to foreign persons holding direct investments in United States real property interests

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle F - Procedure and Administration
       CHAPTER 61 - INFORMATION AND RETURNS
        Subchapter A - Returns and Records
         PART III - INFORMATION RETURNS
          Subpart A - Information Concerning Persons Subject to Special
                Provisions
         

Statute

    Sec. 6039C. Returns with respect to foreign persons holding direct
        investments in United States real property interests
 
    (a) General rule
      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 -
        (1) the name and address of such person,
        (2) a description of all United States real property interests
      held by such person at any time during the calendar year, and
        (3) such other information as the Secretary may by regulations
      prescribe.
    (b) Definition of foreign persons holding direct investments in
        United States real property interests
      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 -
        (1) such person did not engage in a trade or business in the
      United States at any time during such calendar year, and
        (2) 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.
    (c) Definitions and special rules
      For purposes of this section -
      (1) United States real property interest
        The term ''United States real property interest'' has the
      meaning given to such term by section 897(c).
      (2) Foreign person
        The term ''foreign person'' means any person who is not a
      United States person.
      (3) Attribution of ownership
        For purposes of subsection (b)(2) -
        (A) Interests held by partnerships, etc.
          United States real property interests held by a partnership,
        trust, or estate shall be treated as owned proportionately by
        its partners or beneficiaries.
        (B) Interests held by family members
          United States real property interests held by the spouse or
        any minor child of an individual shall be treated as owned by
        such individual.
      (4) Time and manner of filing return
        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.
    (d) Special rule for United States interest and Virgin Islands
        interest
      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 -
        (1) 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
        (2) 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).
 

Sources

    (Added Pub. L. 96-499, title XI, Sec. 1123(a), Dec. 5, 1980, 94
    Stat. 2687; amended Pub. L. 97-34, title VIII, Sec. 831(a)(3), (e),
    Aug. 13, 1981, 95 Stat. 352, 354; Pub. L. 98-369, div.  A, title I,
    Sec. 129(b)(1), July 18, 1984, 98 Stat. 659; Pub. L. 99-514, title
    XVIII, Sec. 1810(f)(7), Oct. 22, 1986, 100 Stat. 2828.)
 

Miscellaneous

                                 AMENDMENTS
      1986 - Subsec. (d). Pub. L. 99-514 inserted ''(and any person
    required to withhold tax under section 1445)'' after ''section
    897(a)''.
      1984 - Pub. L. 98-369 amended section generally, inserting in
    section catchline ''foreign persons holding direct investments in''
    and substituting in text provisions concerning returns with respect
    to foreign persons holding direct investments in United States real
    property for provisions concerning returns with respect to United
    States real property interests.
      1981 - Subsec. (b)(4)(C). Pub. L. 97-34, Sec. 831(e), substituted
    ''For purposes of determining whether an entity to which this
    subsection applies has a substantial investor in United States real
    property, the assets of any person shall include the person's pro
    rata share of the United States real property interest held by any
    corporation (whether domestic or foreign) if the person's pro rata
    share of the United States real property interests exceeded
    $50,000'' for ''The assets of any entity to which this subsection
    applies shall include its pro rata share of the United States real
    property interests held by any corporation in which the entity is a
    substantial investor in United States real property''.
      Subsec. (f). Pub. L. 97-34, Sec. 831(a)(3), added subsec. (f).
                      EFFECTIVE DATE OF 1986 AMENDMENT
      Amendment by Pub. L. 99-514 effective, except as otherwise
    provided, as if included in the provisions of the Tax Reform Act of
    1984, Pub. L. 98-369, div.  A, to which such amendment relates, see
    section 1881 of Pub. L. 99-514, set out as a note under section 48
    of this title.
                      EFFECTIVE DATE OF 1984 AMENDMENT
      Section 129(c)(2) of Pub. L. 98-369 provided that: ''The
    amendments made by subsection (b) (amending this section) shall
    apply to calendar year 1980 and subsequent calendar years.''
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Amendment by Pub. L. 97-34 applicable to dispositions after June
    18, 1980, in taxable years ending after such date, see section
    831(i) of Pub. L. 97-34, set out as a note under section 897 of
    this title.
                               EFFECTIVE DATE
      Section applicable to 1980 and subsequent calendar years, with
    1980 being treated as beginning on June 19, 1980, and ending on
    Dec. 31, 1980, see section 1125(b) of Pub. L. 96-499, set out as a
    note under section 897 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 897, 6652 of this title;
    title 22 section 3142.