Amendments to FIRPTA through H.R. 2870 (also known as the Foreign Investment in Real Property Tax Act of 2013) are being proposed in Congress and if approved by the President should increase foreign capital invested in U.S. Reits.  H.R.2870 will permit the foreign ownership threshold of REITs subject to FIRPTA to increase from 5% to 10%.  Also, H.R.2870 would eliminate the negative impact on foreign investors of IRS Notice 2007-55 by characterizing REIT share redemptions and liquidating distributions to be handled like capital gainsdistributions. H.R. 2870 would clarify FIRPTA so that a REIT can assume that its shareholders are all U.S. persons, except where the REIT knows otherwise.  

Take a look at H.R.2870 by clicking on the link above.  If you work with foreign investors or REITs passage of this legislation will benefit the real estate markets and your clients.  You might want to write your Congressman and encourage their support !