Foreign Investment in Real Estate Tax Act of 1979

[AI summary unavailable — showing source text] Foreign Investment in Real Estate Tax Act of 1979 - Amends the Internal Revenue Code to tax nonresident aliens and foreign corporations engaged in a trade or business in the United States on the same basis as U.S. citizens. Provides that gains or losses realized by such aliens or foreign corporations from the sale or exchange of a U.S. real property interest shall be afforded the same tax treatment as similar gains and losses of U.S. citizens. Defines "U.S. real property interest" as either: (1) an interest in real property located in the United States; (2) stock in a U.S. real property holding organization (a business entity in which a controlling interest is held by ten or fewer individuals and of which U.S. real property interests constitute more than 50 percent of the fair market value of the organization); or (3) an interest in a partnership or trust which is or was a U.S. real property holding organization. Includes within the term "interest in real property" fee ownership and co-ownership of land or improvements thereon, leaseholds of land or improvements, and options to acquire such leaseholds of land or improvements, but excludes an interest in real property which is used …