A foreign person, including a nonresident alien individual, foreign entity or government, may be subject to a U.S. withholding tax of thirty percent on most types of U.S. sourced income. If a tax treaty exists between the U.S. and the foreign person’s country of residence, a reduced rate, including exemption, may apply. Generally, the tax is withheld from the payment made to the nonresident by a withholding agent. The withholding tax is required under sections 1441, 1442, and 1443 of the Internal Revenue Code.
Often the question is asked whether in a 1031 like-kind exchange must land be exchanged for land. The answer is found in the like-kind requirement under Internal Revenue Code (IRC) Section 1031. To qualify for consideration in a 1031 exchange, the relinquished or old property and the replacement property must be like-kind. Property is either real or personal property held for productive use in a trade, business or for investment.
