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.
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Foreign Subsidiaries
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.
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.
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).
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.
‘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.
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.
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.
The new GILTI and repatriation taxes: Issues for flowthroughs
In many instances, the new repatriation tax will produce harsh results for flowthrough taxpayers.
Transnational tax information reporting: A guide for the perplexed
This article alerts the practitioner to when an information return may be necessary.
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.
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.
Look out for Sec. 956 inclusions
This article provides an introduction to Sec. 956 inclusions.
Rolling over equity when purchasing a Canadian company
This item discusses three options to achieve rollover equity when purchasing a Canadian company.
Cleansing the PFIC taint: Planning and pitfalls
This article focuses on the mechanics of the “cleansing” process and the associated advantages and potential pitfalls.
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.
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.
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.
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.
Form 5471 Substantial Compliance: What Does It Mean and Why Is It Critical?
A required person who fails to file the form or files a late or incomplete form is subject to substantial monetary penalties.
INDIVIDUALS
Current Developments in Taxation of Individuals: Part 1
This update surveys recent federal tax developments involving individuals, including court cases, rulings, and guidance issued during the six months ending October 2025.
