Foreign business real estate

The Bureau of Economic Analysis conducts a survey every 5 years for US businesses, individuals, estates and trusts for reporting interests in foreign businesses or real estate. The mandatory survey is due May 29, 2020. The reporting applies to US persons that owned or controlled, directly or indirectly, at least 10% of the voting stock of a foreign business at the end 2019. The reporting is required regardless of how the business or the real estate is owned. Failure to file can trigger penalties, including fines of up to $48,192.

No dollar threshold triggers or excludes a filing. However, the total foreign assets, sales and net income determines the form that needs to be filed. For example, a US filer generally only needs to complete Form BE-10D for a foreign affiliate whose (a) total assets, (b) sales or gross operating revenues and (c) net income, were $25 million or less (positive or negative) at the end of 2019.

All real estate owned must be included on the report unless:

  • Owned by a foreign affiliate that is subject to the reporting requirement
  • Residential real estate held exclusively by a US person for personal use and not for profit-making purposes. A primary residence abroad that is leased to others while the owner resides in the US but which the owner intends to reoccupy is considered real estate held for personal use.

The survey can be completed on the efile system at www.bea.gov/efile.

Please contact us if you would like more information at 401-831-0200.

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