Invest in America Act
This bill amends the Internal Revenue Code to repeal several provision that were added by the Foreign Investment in Real Property Tax Act of 1980. The bill repeals provisions that imposed: (1) capital gains taxes on dispositions of investments in U.S. real property by foreign citizens, and (2) related tax withholding and reporting requirements.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6726 Introduced in House (IH)]
<DOC>
115th CONGRESS
2d Session
H. R. 6726
To amend the Internal Revenue Code of 1986 to repeal certain provisions
applicable to foreign investment in United States real property.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 6, 2018
Mr. Marchant (for himself and Mr. Crowley) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to repeal certain provisions
applicable to foreign investment in United States real property.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Invest in America Act''.
SEC. 2. REPEAL OF AMENDMENTS MADE BY THE FOREIGN INVESTMENT IN REAL
PROPERTY TAX ACT OF 1980 (``FIRPTA'').
(a) Repeal of Capital Gains Tax on Disposition of Investments in
United States Real Property by Foreign Citizens.--
(1) In general.--Subpart D of part II of subchapter N of
chapter 1 of the Internal Revenue Code of 1986 is amended by
striking section 897.
(2) Conforming amendments.--
(A) Section 852(b)(3) of such Code is amended by
striking subparagraph (E).
(B) Section 857(b)(3) of such Code is amended by
striking subparagraph (E) and by redesignating
subparagraph (F) as subparagraph (E).
(C) Section 861(a)(5) of such Code is amended to
read as follows:
``(5) Sale or exchange of real property.--Gains, profits,
and income from the sale or exchange of interests in real
property (as defined in section 856(c)(5)(C), except that such
term shall include mineral, oil, and gas royalty interests)
located in the United States.''.
(D) Section 862(a) of such Code is amended by
adding ``and'' at the end of paragraph (7), by striking
paragraph (8), and by redesignating paragraph (9) as
paragraph (8).
(E) Section 864(c)(8) of such Code is amended by
striking subparagraph (C) and by redesignating
subparagraphs (D) and (E) as subparagraphs (C) and (D),
respectively.
(F) Section 871(h)(4)(C)(v)(I) of such Code is
amended by striking ``other than property described in
section 897(c)(1) or (g)''.
(G) Section 871(k)(2) of such Code is amended by
striking subparagraph (E).
(H) Section 871(n) of such Code is amended by
striking paragraph (7).
(I) Section 882(a) of such Code is amended by
striking paragraph (3).
(J) Section 884(d)(2) of such Code is amended by
striking subparagraph (C) and by redesignating
subparagraphs (D) and (E) as subparagraphs (C) and (D),
respectively.
(K) Section 1125 of the Foreign Investment in Real
Property Tax Act of 1980 is amended by striking
subsections (c) and (d).
(3) Clerical amendment.--The table of sections for subpart
D of part II of subchapter N of chapter 1 of such Code is
amended by striking the item relating to section 897.
(b) Repeal of Withholding of Tax on Dispositions of United States
Real Property Interests.--
(1) In general.--Subchapter A of chapter 3 of such Code is
amended by striking section 1445.
(2) Conforming amendments.--
(A) Section 1446(f)(2)(A) of such Code is amended
by striking ``is not a foreign person'' and inserting
``is a United States person''.
(B) Section 1446(f)(2) of such Code is amended--
(i) by striking ``section 1445(d)'' in
subparagraph (B)(i) and inserting
``subparagraph (C)''; and
(ii) by striking subparagraph (C) and
inserting the following new subparagraphs:
``(C) Notice of false affidavit; foreign
corporations.--If the transferor furnishes the
transferee an affidavit described in subparagraph (A),
and
``(i) in the case of any transferor's
agent--
``(I) such agent has actual
knowledge that such affidavit is false,
or
``(II) in the case of an affidavit
described in subparagraph (A) furnished
by a corporation, such corporation is a
foreign corporation, or
``(ii) in the case of any transferee's
agent, such agent has actual knowledge that
such affidavit is false,
such agent shall so notify the transferee at such time
and in such form and manner as the Secretary may
require by regulations.
``(D) Failure to furnish notice.--
``(i) In general.--If any transferor's
agent or transferee's agent is required by
subparagraph (C) to furnish notice, but fails
to furnish such notice at such time or times
and in such manner as may be required by
regulations, such agent shall have the same
duty to deduct and withhold that the transferee
would have had if such agent had complied with
subparagraph (C).
``(ii) Liability limited to amount of
compensation.--An agent's liability under
clause (i) shall be limited to the amount of
compensation the agent derives from the
transaction.
``(E) Transferor's agent.--For purposes of this
paragraph, the term `transferor's agent' means any
person who represents the transferor--
``(i) in any negotiation with the
transferee or any transferee's agent related to
the transaction, or
``(ii) in settling the transaction.
``(F) Transferee's agent.--For purposes of this
paragraph, the term `transferee's agent' means any
person who represents the transferee--
``(i) in any negotiation with the
transferor or the transferor's agent related to
the transaction, or
``(ii) in settling the transaction.
``(G) Settlement officer not treated as
transferor's agent.--For purposes of this paragraph, a
person shall not be treated as a transferor's agent or
transferee's agent with respect to any transaction
merely because such person performs 1 or more of the
following acts:
``(i) The receipt and the disbursement of
any portion of the consideration for the
transaction.
``(ii) The recording of any document in
connection with the transaction.''.
(C) Section 1446(f)(4) of such Code is amended--
(i) by inserting ``or if any transferor's
agent or transferee's agent fails to withhold
any amount required to be withheld under
paragraph (2)(D) (determined without regard to
clause (ii) thereof),'' after ``withheld under
paragraph (1),'', and
(ii) by striking ``the amount the
transferee failed to withhold'' and inserting
``the amount the transferee, transferor's
agent, or transferee's agent (as the case may
be) so failed to withhold''.
(D) Section 1446(f) of such Code is amended by
striking paragraph (5) and by redesignating paragraph
(6) as paragraph (5).
(3) Clerical amendment.--The table of sections for
subchapter A of chapter 3 of such Code is amended by striking
the item relating to section 1445.
(c) Repeal of Special Reporting Requirements With Respect to United
States Real Property Interests.--
(1) In general.--Subpart A of part III of subchapter A of
chapter 61 of such Code is amended by striking section 6039C.
(2) Conforming amendment.--Section 6652 of such Code is
amended by striking subsection (f).
(3) Clerical amendment.--The table of sections for subpart
A of part III of subchapter A of chapter 61 of such Code is
amended by striking the item relating to section 6039C.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
dispositions and distributions after the date of the enactment
of this Act.
(2) Reporting requirements.--
(A) In general.--The amendments made by subsection
(c) shall apply to calendar years beginning after the
date of the enactment of this Act.
(B) Transition rule.--In the case of the calendar
year which includes the date of the enactment of this
Act, section 6039C of the Internal Revenue Code of 1986
shall be applied by only taking into account interests
held during the portion of such calendar year which
precedes the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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