Foreign Subsidiaries

Topics

October 1, 2018

An old friend reconsidered: Post-TCJA Sec. 338(g) elections for foreign targets

the TCJA’s implementation of a hybrid territorial international tax regime mitigates the benefit of the election and may induce taxpayers to not make the election to avoid additional tax liability on the eventual sale of foreign target shares.

October 1, 2018

Tax reform: Individual taxpayers and the Sec. 962 election

The new “repatriation tax” under the TCJA may cause individual partners and shareholders of flowthrough entities to obtain a deferred tax rate benefit by making this election.

September 14, 2018

IRS issues proposed regs. for GILTI inclusions

The IRS issued proposed regulations implementing Sec. 951A’s global intangible low-taxed income provision, which requires a US shareholder of a controlled foreign corporation to include this income in the shareholder’s gross income.

August 2, 2018

Foreign-derived intangible income deduction: Tax reform’s overlooked new benefit for U.S. corporate exporters

One new opportunity created by the TCJA is the foreign-derived intangible income deduction in Sec. 250(a).

August 1, 2018

The carrot-and-stick approach to on-shoring intangible value

This item discusses provisions of the TCJA that seek to curb the erosion of the U.S. tax base.

July 1, 2018

‘Toll charge’ guidance may trigger capital gain on PTI distributions

This item discusses uncertainties regarding the
consequences of a midyear distribution
of PTI by a CFC.

July 1, 2018

New Sec. 960 ‘properly attributable to’ standard raises questions for Sec. 956 inclusions

Determining how to “properly attribute” a foreign
income tax to an income inclusion is unclear, particularly with respect to Sec. 956 inclusions.

July 1, 2018

Tax reform legislation narrows insurance PFIC exception

A change to the Code limits the ability of shareholders of certain foreign insurance companies to avoid being subject to antideferral rules that apply to passive foreign investment companies.

June 1, 2018

The new GILTI and repatriation taxes: Issues for flowthroughs

In many instances, the new repatriation tax will produce harsh results for flowthrough taxpayers.

March 1, 2018

Transnational tax information reporting: A guide for the perplexed

This article alerts the practitioner to when an information return may be necessary.

February 1, 2018

How inbound real estate investors are treated under the Tax Cuts and Jobs Act

This column discusses the portions of the act likely to affect the typical inbound real estate investment structure.

January 1, 2018

U.S. parent’s CFCs held U.S. property under Sec. 956 as result of intercompany transactions

Tax Court granted the government’s motion for summary judgment that intercompany transactions
between a U.S. parent’s CFCs and its domestic subsidiaries resulted in the CFCs holding U.S. property.

November 1, 2017

Look out for Sec. 956 inclusions

This article provides an introduction to Sec. 956 inclusions.

August 1, 2017

Rolling over equity when purchasing a Canadian company

This item discusses three options to achieve rollover equity when purchasing a Canadian company.

June 1, 2017

Cleansing the PFIC taint: Planning and pitfalls

This article focuses on the mechanics of the “cleansing” process and the associated advantages and potential pitfalls.

April 1, 2017

New regulations for Subpart F and CFC investment in U.S. property

The regulations address the treatment of U.S. properties held by CFCs in certain transactions involving partnerships.

January 1, 2017

Regulations Govern Treatment of Controlled Foreign Corporations Using Partnerships

The IRS issued regulations aimed at preventing controlled foreign corporations from using partnerships to avoid Sec. 956, which requires income inclusion for certain investments in U.S. property.

November 2, 2016

IRS Finalizes Rules on Controlled Foreign Corporations

The IRS issued regulations aimed at preventing controlled foreign corporations from using partnerships to avoid Sec. 956, which requires income inclusion for certain investments in U.S. property.

July 1, 2016

Issues Involving the Interplay of Subpart F Income Recapture Account and Sec. 956 Inclusion

Treating a Sec. 956 inclusion as not a distribution for purposes of Regs. Sec. 1.952-1(f)(2)(iii) leads to unintended results under certain fact patterns.

June 1, 2016