Receiving money from Foreign people

[Enrico Innocenti]

Hello,

a friend of mine lives abroad, but would like to invest in real estate with me and share in the equity-upside. My CPA is mentioning FIRPTA as a relevant topic.

have you ever received money from Foreign people? What structure have you put in place (Corporations, LLC, etc).

happy to discuss legal and tax advice for a fee, or retain professionals. 

enrico

[Basit Siddiqi]

FIRPTA is relevant when a foreign individual sells a property - not necessarily relevant when receiving funds from a foreign source.

If you invest in a partnership where there are foreign individuals, you may be required to withhold on their behalf in certain situations such as when there is positive income.

You should also research ECI(Effectively connected income) and FDAP(Fixed, Determinable, Annual and Periodic).
Also, the foreign individual likely needs at ITIN.

Best of luck.