'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.
CFCs
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.
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.
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.
Notice 2015-79: New Anti-Inversion Guidance
IRS inversion guidance introduces new restrictions on corporate inversions and post-inversion restructuring transactions.
IRS Holds Its Ground in Substantial Business Activity Regulations
Despite IRS moves to curb corporate inversions, some multinational corporations still search for low-tax jurisdictions.
Foreign Corporation Earnings and Profits: Common Misconceptions and Pitfalls
This item provides an overview of E&P of foreign corporations and several common misconceptions that directly affect E&P.
Recently Issued Regulations Will Increase Likelihood of Sec. 956 and Subpart F Income Inclusions
The regulations limit the application of the “active rents and royalties” exception to foreign personal holding company income, expanding the instances in which a controlled foreign corporation will be treated as holding U.S. property.
Regulations Prevent CFCs From Using Partnerships to Avoid Sec. 956
The IRS issued temporary and proposed regulations governing the treatment of property held by a controlled foreign corporation in connection with certain transactions involving partnerships.
Basis Adjustments in CFC Stock Held by Partnerships for Subpart F Inclusions, PTI Distributions
Application of PTI rules to partnerships can be tricky, in part because domestic partnerships are treated as U.S. persons, but foreign partnerships are not. Therefore, a domestic partnership can be a U.S. shareholder of a CFC and entitled to a Sec. 961(a) basis adjustment for the CFC stock it owns, but a foreign partnership, even if owned by U.S. persons, is not so entitled.
Selling Partnerships That Own CFCs: A Potential Trap for the Unwary
Should gain recognized on a sale of a partnership that owns CFC stock be treated as capital gain or ordinary income?
