Tax Savings With Exports Using The Deduction for Foreign Derived Intangible Income and the IC-DISC
Author: Robert J. Misey
| 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 12/31/2026 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
Generate tremendous savings for your exporter clients by taking advantage of the deduction for the Foreign Derived Intangible Income (FDII) or an Interest Charge-Domestic International Sales Corporation (IC-DISC).
Publication Date: December 2023
Topics Covered
- Tax benefits of the IC-DISC
- Tests to qualify as an IC-DISC
- Requirements—manufacturing, destination, content
- Determining and maximizing the IC-DISC benefit
- A multitude of structuring techniques
- C Corps taking advantage of the deduction for Foreign Derived Intangible Income
Learning Objectives
- Describe how IC-DISCs are taxed, how they work and possible structuring techniques that can be implemented
- Identify opportunities where IC-DISCs can be used to create tax benefits for export businesses
- Explain how to meet the tests and requirements to maximize the FDII deduction
- Identify the minimum par value in order to form an IC-DISC
- Identify the IRS form that should be completed to elect to be an IC-DISC
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
