Publicly Traded Stock Exception from FIRPTA

§ 897. Disposition of investment in United States real property(a) General rule(1) Treatment as effectively connected with United States trade or businessFor purposes of this title, gain or loss of a nonresident alien individual or a foreign corporation from the disposition of a United States real property interest shall be taken into account—(A) in the case of a nonresident alien individual, under section 871(b)(1), or (B) in the case of a foreign corporation, under section 882(a)(1), as if the taxpayer were engaged in a trade or business within the United States during the taxable year and as if such gain or loss were effectively connected with such trade or business. (2) Minimum tax on nonresident alien individuals(A) In generalIn the case of any nonresident alien individual, the taxable excess for purposes of section 55(b)(1) shall not be less than the lesser of—(i) the individual’s alternative minimum taxable income (as defined in section 55(b)(1)(D)) for the taxable year, or (ii) the individual’s net United States real property gain for the taxable year. (B) Net United States real property gainFor purposes of subparagraph (A), the term “net United States real property gain” means the excess of—(i) the aggregate of the gains for the taxable year from dispositions of United States real property interests, over (ii) the aggregate of the losses for the taxable year from dispositions of such interests. (b) Limitation on losses of individualsIn the case of an individual, a loss shall be taken into account under subsection (a) only to the extent such loss would be taken into account under section 165(c) (determined without regard to subsection (a) of this section). (c) United States real property interestFor purposes of this section—(1) United States real property interest(A) In generalExcept as provided in subparagraph (B) or subsection (k), the term “United States real property interest” means—(i) an interest in real property (including an interest in a mine, well, or other natural deposit) located in the United States or the Virgin Islands, and (ii) any interest (other than an interest solely as a creditor) in any domestic corporation unless the taxpayer establishes (at such time and in such manner as the Secretary by regulations prescribes) that such corporation was at no time a United States real property holding corporation during the shorter of—(I) the period after June 18, 1980, during which the taxpayer held such interest, or (II) the 5-year period ending on the date of the disposition of such interest. (B) Exclusion for interest in certain corporationsThe term “United States real property interest” does not include any interest in a corporation if—(i) as of the date of the disposition of such interest, such corporation did not hold any United States real property interests,