Structuring United States Activities of a Nonresident Business
Author: Patrick McCormick
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2025 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
The United States imposes a multitude of tax requirements on United States taxpayers with foreign investments, whether through information reporting requirements or, in the case of foreign corporations, immediate inclusions for what otherwise would be deferred income. Rather curiously by juxtaposition, foreign taxpayers making investments in the United States often find favorable tax provisions, including exemptions from the tax for many capital gains items. Given this background, it is critical to properly structure United States investments by foreign taxpayers, looking at relevant considerations and standard techniques, including determining the proper entity structure as well as tax considerations.
Publication Date: July 2022
Topics Covered
- Nonresidents — Income Tax
- Background Considerations
- Nonresidents — United States Trade or Business Income
- Nonresidents — FIRPTA
- FDAP Income
- Nonresidents — Income Tax Treaties
- Income Tax Treaties — Applicable Provisions
- Noncitizen Non-domiciliaries — Transfer Taxes
- Estate and Gift Tax Treaties
- Foreign Trusts
- Structuring United States Investments by Nonresidents
Learning Objectives
- Describe the statutory rules associated with nonresidents for income tax purposes
- Identify the interplay of tax treaties with statutory rules
- Recognize whot to properly structure United States investments by nonresidents to optimize their American tax results
- Identify which type of income is sourced to the place of use of the asset
- Identify which type of income functions as a catch-all for U.S.-sourced income items not otherwise subject to U.S. tax
- Recognize the percent foreign corporations often face estate/gift tax exposure to
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
