H.R. 3588
119th CONGRESS 1st Session
To amend the Internal Revenue Code of 1986 to require all real estate purchases by non-citizens to be reported to the Internal Revenue Service, to impose a tax on the purchase of real estate purchases by certain non-citizens, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES · May 23, 2025 · Sponsor: Mr. Harrigan
Table of contents
Sec. 5000E. Imposition of tax on acquisition of United States real property by disqualified persons.
- (a) In general
- In the case of any acquisition of any United States real property by any disqualified person, there is hereby imposed on such person a tax equal to 50 percent of the amount paid for such interest.
- (b) Disqualified person
- For purposes of this section—
- (1) In general
- The term means—
disqualified person- any citizen of a disqualified country (other than a citizen, or lawful permanent resident, of the United States),
- any entity domiciled in a disqualified country,
- any disqualified country and any political subdivision, agency, or instrumentality thereof, and
- except as provided in paragraph (3), any entity if persons described in subparagraph (A), (B), or (C) (in the aggregate) 10-percent control such entity.
- The term means—
- (2) Disqualified country
- The term means any country identified in the report described in section 3 of the .
disqualified country
- The term means any country identified in the report described in section 3 of the .
- (3) Exception for certain non-citizens
- An individual shall not be treated as described in paragraph (1)(A) if such individual resides in the United States during the taxable year due to—
- diplomatic obligations, or
- a grant of asylum by the United States.
- An individual shall not be treated as described in paragraph (1)(A) if such individual resides in the United States during the taxable year due to—
- (4) Exception for certain publicly traded corporations
- (A) In general
- An entity shall not be treated as described in paragraph (1)(D) if—
- (i) such entity is a specified publicly traded corporation, or
- (ii) specified publicly traded corporations (in the aggregate) control such entity.
- An entity shall not be treated as described in paragraph (1)(D) if—
- (B) Specified publicly traded corporation
- (i) The term means any corporation if—
specified publicly traded corporation - the stock of such corporation is regularly traded on an established securities market located in the United States, and
- specified disqualified persons do not (in the aggregate) control such corporation.
- (ii) The term means, with respect to any corporation referred to in clause (i), any person which—
specified disqualified persons - is described in subparagraph (A), (B), or (C) of paragraph (1), and
- 10-percent controls such corporation.
- (i) The term means any corporation if—
- (A) In general
- (c) Prorated tax on acquisitions by entities not more than 50 percent controlled by disqualified persons
- (1) In general
- In the case of any disqualified person described in subsection (b)(1)(D) with respect to which persons described in subparagraphs (A), (B), or (C) of subsection (b)(1) do not (in the aggregate) control such disqualified person, subsection (a) shall be applied by substituting for .
the applicable percentage ofthe amount``
- In the case of any disqualified person described in subsection (b)(1)(D) with respect to which persons described in subparagraphs (A), (B), or (C) of subsection (b)(1) do not (in the aggregate) control such disqualified person, subsection (a) shall be applied by substituting for .
- (2) Applicable percentage
- For purposes of this section, the term means, with respect to any disqualified person to which paragraph (1) applies, the highest percentage which could be substituted for both places it appears in section 954(d)(3) without causing persons described in subparagraph (A), (B), or (C) of subsection (b)(1) (in the aggregate) to control (determined by taking into account such substitution) such disqualified person.
applicable percentage50 percent
- For purposes of this section, the term means, with respect to any disqualified person to which paragraph (1) applies, the highest percentage which could be substituted for both places it appears in section 954(d)(3) without causing persons described in subparagraph (A), (B), or (C) of subsection (b)(1) (in the aggregate) to control (determined by taking into account such substitution) such disqualified person.
- (1) In general
- (d) Control
- For purposes of this section—
- (1) In general
- The term has the meaning given such term under section 954(d)(3), determined by treating the rules of section 958(a)(2) as applying to both foreign and domestic corporations, partnerships, trusts, and estates.
control
- The term has the meaning given such term under section 954(d)(3), determined by treating the rules of section 958(a)(2) as applying to both foreign and domestic corporations, partnerships, trusts, and estates.
- (2) 10-percent control
- The term means control (as defined in paragraph (1)), determined by substituting for both places it appears in section 954(d)(3).
10-percent control10 percent50 percent
- The term means control (as defined in paragraph (1)), determined by substituting for both places it appears in section 954(d)(3).
- (e) United States real property
- The term has the meaning which would be given the term by section 897(c) if—
United States real propertyUnited States real property interest- paragraph (1)(A)(ii) were applied by substituting for and all that follows, ``such corporation
was not a United States real property holding corporation at the time of acquisition - paragraph (1)(B) did not apply, and
- paragraph (3) were applied by substituting for .
at the time of acquisitionat some time during the shorter of the periods described in paragraph (1)(A)(ii)
- paragraph (1)(A)(ii) were applied by substituting for and all that follows, ``such corporation
- The term has the meaning which would be given the term by section 897(c) if—