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.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.