Page:United States Statutes at Large Volume 98 Part 1.djvu/707

 PUBLIC LAW 98-369—JULY 18, 1984

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98 STAT. 659

"(2) TRANSFEREE.—The term 'transferee' means the person acquiring the United States real property interest. "(3) FOREIGN PERSON.—The term 'foreign person' means any person other than a United States person. "(4) TRANSFEROR'S MAXIMUM TAX LIABILITY.—The term 'transferor's maximum tax liability' means, with respect to the disposition of any interest, the sum of— "(A) the maximum amount which the Secretary determines could be imposed as tax under section 871(b)(1) or 882(a)(1) by reason of the disposition, plus "(B) the amount the Secretary determines to be the transferor's unsatisfied withholding liability with respect to such interest. "(5) TRANSFEROR'S UNSATISFIED WITHHOLDING LIABILITY.—The

term 'transferor's unsatisfied withholding liability' means the withholding obligation imposed by this section on the transferor's acquisition of the United States real property interest or on the acquisition of a predecessor interest, to the extent such obligation has not been satisfied." (2) CLERICAL AMENDMENT.—The table of sections for subchapter A of chapter 3 is amended by adding at the end thereof the following new item: "Sec. 1445. Withholding of tax on dispositions of United States real property interests." (b) REPORTING REQUIREMENTS LIMITED TO FOREIGN PERSONS HOLDING DIRECT INVESTMENTS IN UNITED STATES REAL PROPERTY.—

(1) IN GENERAL.—Section 6039C (relating to returns with respect to United States real property interests) is amended to read as follows:

26 USC 6039C.

"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.

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"(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).

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