Special rules relating to distributions, etc., by corporations, partnerships, trusts, or estates
(1)
Certain domestic partnerships, trusts, and estates
In the case of any disposition of a United States real property interest as defined in section 897(c) (other than a disposition described in paragraph (4) or (5)) by a domestic partnership, domestic trust, or domestic estate, such partnership, the trustee of such trust, or the executor of such estate (as the case may be) shall be required to deduct and withhold under subsection (a) a tax equal to the highest rate of tax in effect for the taxable year under section 11(b) (or, to the extent provided in regulations, 20 percent) multiplied by the gain realized to the extent such gain—
(A)
is allocable to a foreign person who is a partner or beneficiary of such partnership, trust, or estate, or
(B)
is allocable to a portion of the trust treated as owned by a foreign person under subpart E of part I of subchapter J.
(Added [Pub. L. 98–369, div. A, title I, § 129(a)(1)], July 18, 1984, [98 Stat. 655]; amended [Pub. L. 99–514, title III, § 311(b)(4)], title XVIII, § 1810(f)(2)–(4)(A), (5), (6), (8), Oct. 22, 1986, [100 Stat. 2219], 2827, 2828; [Pub. L. 100–647, title I, § 1003(b)(3)], Nov. 10, 1988, [102 Stat. 3384]; [Pub. L. 103–66, title XIII, § 13221(c)(3)], Aug. 10, 1993, [107 Stat. 477]; [Pub. L. 104–188, title I, § 1704(c)(1)], Aug. 20, 1996, [110 Stat. 1878]; [Pub. L. 105–34, title III, § 311(c)(1)], Aug. 5, 1997, [111 Stat. 835]; [Pub. L. 108–27, title III, § 301(a)(2)(C)], May 28, 2003, [117 Stat. 758]; [Pub. L. 109–222, title V], §§ 505(b), 506(b), May 17, 2006, [120 Stat. 356], 358; [Pub. L. 110–289, div. C, title I, § 3024(a)]–(c), July 30, 2008, [122 Stat. 2895]; [Pub. L. 112–240, title I, § 102(c)(1)(C)], (3), Jan. 2, 2013, [126 Stat. 2319]; [Pub. L. 114–113, div. Q, title III], §§ 323(b), 324(a), (b), Dec. 18, 2015, [129 Stat. 3103]; [Pub. L. 115–97, title I, § 13001(b)(3)(A)]–(C), Dec. 22, 2017, [131 Stat. 2097].)