Publications
U.S. Tax Planning for Foreign Businesses and Individuals
May Guidance for Domestic Trusts Be Drawn From the Final §1.958-1(d) Regulations” 51 Bloomberg Tax Management International Journal No. 6 (June 3, 2022)
On January 25, 2022, the Treasury Department and Internal Revenue Service published guidance under §958 for determinations of stock ownership in foreign corporations owned through domestic partnerships (the “Final Regulations”). The Final Regulations reflect the duality of partnerships: in some cases regarded as entities separate and apart from their partners and in other cases considered to be an aggregation of the partners.
“The Final §385 Debt Equity Regulations: Who Got a Pass and Who Should Worry” 50 Bloomberg Tax Management International Journal No. 1 (December 31, 2020)
Drafting rules to distinguish stock from debt must not be easy. Congress couldn’t do it and granted regulatory authority to the Internal Revenue Service “to prescribe such regulations as may be necessary or appropriate to determine whether an interest in a corporation is to be treated for the purposes of this title as stock or indebtedness (or as in part stock or in part indebtedness).”
“Foreign Incorporations of U.S. Real Estate: No You Can’t; Yes You Can” 49 Bloomberg Tax Management International Journal No. 1 (January 10, 2020)
Tax questions are often simple. Answers, rarely so. In this case the simple question is “Can I transfer my real estate in the United States to a foreign corporation without U.S. taxation of the unrealized gain?”
“GILTI Until Proven Corporate: The CFC Dilemma of Individual Shareholders” 48 Bloomberg BNA Tax Management International Journal 135 (March 1, 2019)
For U.S. Shareholders who are corporations, the tax on GILTI is significantly more manageable than for U.S. Shareholders who are individuals.
“GILTI Until Proven Corporate: The CFC Dilemma of Individual U.S. Shareholders: New Developments” 48 Bloomberg Tax Management International Journal No. 9 (September 13, 2019)
The subject matter of this article was recently addressed in this same space. However, new developments — at least one of which materialized between submission and publication — more than merit revisiting the topic. Such is the nature of tax law.
“Tax Structuring of U.S. Cannabis Companies for Higher Returns and Foreign Investment” 48 Bloomberg BNA Tax Management International Journal 222 (May 10, 2019)
The tax consequences of the illegal status of cannabis cultivation, manufacture, and sale under federal law is addressed by §280E.
“Tax Relief is Not Just for U.S. Persons: the 20% Deduction for Qualified Business Income Under New Code Section 199A” 47 Bloomberg BNA Tax Management International Journal 204 (March 9, 2018)
Believing that tax relief should not be limited to corporate taxpayers, Congress enacted new Code §199A to provide a corresponding reduction in the effective tax rates of individuals engaged in the active conduct of a trade or business as sole proprietors, partnerships, and S corporations (‘‘pass-through entities’’).
“Proposed Regulations Provide Further Guidance to Taxpayers to Qualify for the Deduction for Qualified Business Income Section 199A Deduction for Qualified Business Income” 47 Bloomberg BNA Tax Management International Journal 734 (November 9, 2018)
The preamble to the Proposed Regulations confirms the 20% deduction for qualified business income under Code section 199A is available to both foreign and domestic taxpayers.
“Grecian Magnesite Mining – Court Determines Income Tax Treatment of Foreign Partner’s Gain on Redemption of U.S. Partnership Interest” 96 Taxes 47 No. 1 (January 2018)
The decision of the U.S. Tax Court in Grecian Magnesite Mining, Industrial & Shipping Co., SA1 is significant in that it settles (at least for the moment) the U.S. income tax treatment of foreign partners on redemption of U.S.-domestic partnership interests, sheds light on the Tax Court’s perception of aggregate versus entity theories of taxation in the context of sales and redemptions of partnership interests, and further clarifies when reasonable cause exists for a taxpayer’s failure to file an income tax return.
“Planning for the Use of the United States as a Financial Haven: Part One” 45 Bloomberg BNA Tax Management International Journal 677 (November 11, 2016)
The United States has not agreed to participate in the Common Reporting Standard1 (CRS), relying instead on the Foreign Account Tax Compliance Act (FATCA) regime enacted in 2010 and initiated in 2014. United States participation in CRS is highly unlikely.
“Planning for the Use of the United States as a Financial Haven: Part Two” 45 Bloomberg BNA Tax Management International Journal 749 (December 9, 2016)
A prior commentary explained the limited reporting by financial institutions for trusts organized in the United States and how administration of those trusts should be approached so as to minimize CRS and FinCEN reporting to foreign governments.1 This commentary addresses U.S. tax considerations and planning to minimize the impact of U.S. income and estate taxation on the trust income and assets.