Real Estate Investment and Jobs Act of 2015

Bill: 114-s-915
Sponsor: Sen. Hatch, Orrin G. [R-UT]
Introduced: 2015-04-14 in the Senate
Policy area: Taxation
Subjects: Capital gains tax
Corporate finance and management
Debt collection
Financial services and investments
Foreign and international corporations
Income tax deductions
Interest, dividends, interest rates
Medicare
Real estate business
Securities
Tax administration and collection, taxpayers

Summary:
action_date: 2015-04-14
text: 

Real Estate Investment and Jobs Act of 2015

 
This bill amends the Internal Revenue Code, with respect to the taxation of stock interests of foreign investors, to: (1) increase from 5% to 10% the stock ownership threshold in a real estate investment trust (REIT) for exempting such stock from treatment as a U.S. real property interest on disposition, (2) increase from from 10% to 15% the rate of withholding of tax on dispositions of U.S. real property interests, (3) require a corporation to notify the Department of the Treasury of its status as a U.S. real property holding corporation and to disclose such status on payee statements, (4) impose a penalty on a corporation for failing to make such disclosure, (5) require brokers who sell stock of a U.S. real property holding corporation to a foreign person to withhold 15% of the amount realized on the sale, and (6) deny dividends derived from regulated investment companies and REITs the tax deduction for the U.S.-sourced portion of such dividends received from a foreign-owned corporation.
 
The bill also increases from 30% to 35% the rate of the continuous levy on payments to Medicare providers and suppliers for unpaid taxes.

action_date: 2015-04-14
text: 
(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)
 

Real Estate Investment and Jobs Act of 2015 

 
(Sec. 2) This section increases from 5% to 10% the stock ownership threshold in a real estate investment trust (REIT) for exempting such stock as a U.S. real property interest on disposition. 
 
(Sec. 3) This section provides for an increase from 10% to 15% of the rate of withholding of tax on dispositions of U.S. real property interests. 
 
(Sec. 4) This section requires any corporation that is a U.S. real property holding company during a specified period to disclose such status to the Internal Revenue Service, the corporation's shareholders, and the public. The corporation is subject to penalties for failure to make such a disclosure. 
 
(Sec. 5) This section requires a broker to deduct and withhold a tax equal to 15% of the amount realized on the disposition of stock of a U.S. real property holding company by a foreign person.
 
(Sec. 6) This provision exempts regulated investment companies (RICs) and REITs from tax rules governing the treatment of stock of a domestic corporation as a U.S. real property holding company. 
 
(Sec. 7) This section provides that neither RICs nor REITs shall not be treated as domestic corporations for purposes of determining whether dividends from a foreign corporation are eligible for the tax deduction for the U.S-sourced portion of such dividends. 
 
(Sec. 8) This section increases from 30% to 35% the rate of the continuous levy on payments made after 180 days after the enactment of this Act to Medicare providers and suppliers for unpaid taxes. 
 


Legislative actions:
action_date: 2015-04-14
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 48.
action_date: 2015-04-14
text: Committee on Finance. Original measure reported to Senate by Senator Hatch. With written report No. 114-25.
action_date: 2015-04-14
text: Committee on Finance. Original measure reported to Senate by Senator Hatch. With written report No. 114-25.
action_date: 2015-04-14
text: Introduced in Senate