The Resource Challenges of TCJA to U.S. individuals with foreign business interests

Challenges of TCJA to U.S. individuals with foreign business interests

Label
Challenges of TCJA to U.S. individuals with foreign business interests
Title
Challenges of TCJA to U.S. individuals with foreign business interests
Creator
Subject
Language
eng
Summary
Individuals operating and investing in foreign businesses face a new, unfavourable tax provision and even useful planning "solutions" have flaws. The first part of this article reviews the GILTI provision, including certain state and local tax consequences and the application of the "net investment income tax" of 3.8%. It then discusses the legislative history accompanying the repeal of Section 958(b)(4) and recommends that the IRS issue a notice, to be followed by Treasury Regulations, providing for an interpretation of this repeal that is nuanced and limited and would preserve the benefit of these existing structures by not treating these foreign corporations as CFCs. This article then discusses the Tax Court decision in Estate of Miller (reviewed by the full Tax Court), which interpreted certain stock attribution rules under the now-repealed foreign personal holding company provisions and could provide courts adjudicating this issue with precedent to reach this result in the absence of such regulations. The second part of this article addresses three alternatives to ameliorate the GILTI tax cost to individual U.S. shareholders and concludes that each of these alternatives - although containing both benefits and detriments - is flawed
Citation source
In: Journal of taxation. - New York. - Vol. 129 (2018), no. 5 ; 42 p
http://library.link/vocab/creatorName
  • Parnes, A.P
  • Gutwein, A
  • Semanski, K.R
Geographic coverage
North America
Language note
English
http://library.link/vocab/subjectName
  • TCJA
  • individual income tax
  • interest
  • GILTI
  • shareholder
  • state tax
  • local tax
  • case law
  • investment income
  • Subpart F income
  • foreign personal holding company
  • CFC
  • check-the-box regulations
Label
Challenges of TCJA to U.S. individuals with foreign business interests
Instantiates
Publication
Label
Challenges of TCJA to U.S. individuals with foreign business interests
Publication

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