KPMG report: Final regulations on exception for U.S. real property interests held by foreign pension funds

A KPMG report regarding final regulations on exception for U.S. real property interests held by foreign pension funds

A KPMG report providing initial impressions and observations regarding final regulations

The U.S. Treasury Department and IRS on December 28, 2022, released final regulations (T.D. 9971) under section 897(l), which generally provide qualified foreign pension funds (QFPFs) and their wholly owned subsidiaries with a complete exemption from section 897 on gain from the disposition of a U.S. real property interest (USRPI) and the receipt of certain distributions described in section 897(h).

The final regulations [PDF 433 KB] were published in the Federal Register on December 29, 2022. The final regulations finalize guidance provided in proposed regulations (REG-109826-17) released June 6, 2019.

Read a January 2023 report [PDF 1.3 MB] prepared by KPMG LLP that provides initial impressions and observations regarding the final regulations.

 

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