Page:United States Statutes at Large Volume 98 Part 1.djvu/708

 98 STAT. 660

PUBLIC LAW 98-369—JULY 18, 1984 "(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 FIUNG RETURN.—All returns re-

quired 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 corpo-

ration subject to tax under section 897(a) 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)(l)(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)(l)(A)(ii)." (2) CLERICAL AMENDMENT.—The table of sections for subpart A of part III of subchapter A of chapter 61 is amended by striking out the item relating to section 6039C and inserting in lieu thereof the following: "Sec. 6039C. Returns with respect to foreign persons holding direct investments in United States real property interests." (c) EFFECTIVE DATES.—

26 USC 1445 note. 26 USC 6039C note.

26 USC 881.

(1) IN GENERAL.—The amendments made by subsection (a) shall apply to any disposition on or after January 1, 1985. (2) REPORTING REQUIREMENTS.—The amendments made by subsection (b) shall apply to calendar year 1980 and subsequent calendar years. SEC. 130. TREATMENT OF PAYMENTS TO GUAM AND VIRGIN ISLANDS CORPORATIONS. (a) GENERAL RULE.—Subsection (b) of section 881 (relating to

exception for Guam corporations) is amended to read as follows: "(b) EXCEPTION CORPORATIONS.—

FOR CERTAIN

GUAM

AND VIRGIN

ISLANDS

"(1) IN GENERAL.—For purposes of this section, a corporation created or organized in Guam or the Virgin Islands or under the law of Guam or the Virgin Islands shall not be treated as a foreign corporation for any taxable year if— "(A) at all times during such taxable year less than 25 percent in value of the stock of such corporation is owned (directly or indirectly) by foreign persons, and

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