1315_Nareit Testimonials_Feuerstein_2023-03-28_v2
03/31/2023 | by Nareit Staff

Adam Feuerstein, principal at PwC, participated in a video interview in conjunction with Nareit’s REITwise: 2023 Law, Accounting & Finance Conference held March 21-23 in Phoenix, Arizona.

Feuerstein gave an overview of existing Foreign Investment in Real Property Tax Act (FIRPTA) rules and how they apply to domestically controlled U.S. REITs.

He also commented on proposals to change regulations for domestically controlled REITs, which are REITs where less than 50% of ownership is held by foreign individuals. The proposals say that if a U.S. corporation has at least 25% foreign ownership, then the share held by foreign owners must be taken into account when conducting the domestically controlled REIT test.

While the reaction to the change has been fairly negative, Feuerstein said, “people have to figure out how they approach it, and that depends a lot on peoples’ circumstances.”

Feuerstein also commented on the extent to which investors are relying on the suggested transition rules and what impact that is having on the market.