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U.S. Taxation of Foreign Corporations: A Case Study Approach (TFC3)

Wednesday, November 27, 2024
10:00 AM - 01:00 PM (Eastern)

Renata Maroney (Stasaityte), CPA

  • Format Webinar
  • Credits 3.00
  • Level Basic
  • Field of Study Taxes (3)

$149.00


Overview

This course is a case study designed to provide a comprehensive overview of U.S. taxation of a foreign corporation. Using a specific example, the course will walk through step-by-step mechanics on how to calculate the income inclusions and foreign tax credits under GILTI (Global Intangible Low-Taxed Income), Subpart F, and PFIC (Passive Foreign Investment Company) regimes. The case study will further evaluate tax impact of subsequent distributions from the foreign corporation and sales of its stock. A compare-and-contrast approach will highlight the different outcomes of these regimes for individuals and for C corporations, empowering participants to advise their clients on the most tax efficient way to structure their international investments.

Major Topics:

  • Understand how to approach and analyze the U.S. taxation of foreign corporations
  • Using an example, calculate GILTI, Subpart F, and PFIC income inclusions for an individual and C corporation
  • Determine how much foreign tax credit can be claimed against such income inclusions
  • Determine how subsequent dividend distributions from the foreign corporation are taxed
  • Calculate capital gain on the disposition of the foreign corporation
  • Discuss the impact of Section 962 election
  • Compare different outcomes under GILTI, Subpart F, and PFIC regimes for individuals and corporations
  • Identify basic strategies for managing tax liabilities related to foreign corporations

Learning Objectives

  • Explain the similarities and differences between GILTI, Subpart F, and PFIC regimes
  • Understand the mechanics of income inclusions and foreign tax credits available under GILTI, Subpart F, and PFIC regimes
  • Compare and contrast the overall tax liability under different circumstances
  • Identify tax planning opportunities for income from foreign corporations

Who should take this course:

Any tax practitioner with clients invested in a foreign corporation

A basic understanding of the tax rules relating to individual and corporate income tax

None

Yes

No

No

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