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Article: Hot new developments in real estate finance.(Focus on: Banking & Finance)
- Article from:
- Real Estate Weekly
- Article date:
- February 18, 1998
- Author:
CopyrightCOPYRIGHT 1998 Hagedorn Publication. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The following new developments in real estate finance will be of interest to lenders, owners, investors, brokers and other real estate professionals, as well as all persons involved in real estate financings:
Parties to financings involving foreign persons or entities may be liable (under the final IRS "conduit" financing regulations) for substantial withholding taxes relating to "back to back" loans (i.e., a lender makes a loan to an intermediate entity, which in turn makes a loan to the ultimate borrower), guarantees, and other deals involving foreigners.
However, U.S. income tax on loans by foreign lenders to U.S. persons can still be avoided ...