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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Law

Date & Time
  • event Date

    Friday, June 7, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$347.00
CLE
CPE
ALL

This CLE/CPE webinar will provide tax counsel with a thorough and practical guide to structuring strategies and tax considerations for foreign investors in U.S. assets utilizing leveraged blockers and other tax planning mechanisms. The panel will discuss recent IRS guidance, key tax considerations in structuring deals involving foreign investors, transfer pricing analysis, and other key items.

Faculty

Paul Flignor
Principal Economist
DLA Piper

Mr. Flignor concentrates his practice in intercompany pricing and intellectual property valuation.





Mr. Flignor has more than 15 years of professional experience in resolving pricing and valuation issues in the areas of international tax planning, controversy resolution, transaction support, licensing and financial economics. He is noted particularly for integrating business strategy and financial economics to solve complex valuation problems of leading companies.

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Shiukay Hung
Partner
DLA Piper

Shiukay Hung is a Partner and the Co-Chair of DLA Piper’s National REIT Tax Practice. He is recognized as a leading tax lawyer by both Chambers USA and Legal 500. Shiukay’s tax practice primarily focuses on REITs and real estate private equity, including real assets credit and mortgage REITs. His clients include Canadian pension funds, sovereign wealth funds (SWFs), US sponsors, US-listed REITs, and non-traded REITs.

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Neeraj Kirpalani
Senior Managing Economist
DLA Piper

Mr. Kirpalani provides a range of transfer pricing services with a focus on intercompany financing. He has experience with clients across a variety of industries including financial services, energy, consumer products, apparel, and pharmaceuticals. 





Mr. Kirpalani advises clients by gathering quantitative and qualitative information on the client's business and industry, conducting functional and financial analyses of companies' operations and preparing transfer pricing planning and documentation studies to comply with domestic and OECD taxation regulations.

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Aalok Virmani
Partner
Cooley LLP

Mr. Virmani counsels investment fund sponsors on the domestic and international tax aspects of forming, organizing and operating venture capital funds, private equity funds, real estate funds, hedge funds, debt funds and funds of funds. He frequently represents clients with respect to general partner-led fund restructurings, US and non-US investor representations, secondary transactions and minority investments in fund sponsors. In addition, Mr. Virmani often advises founders on the establishment of their investment management firms, including advising them on the organizational structure, employment matters, carried interest allocations and capital commitment funding strategies.

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Description

More and more foreigners are investing in U.S. real estate, funds, and other assets. Tax professionals must implement strategies to avoid and minimize adverse tax consequences stemming from these investments.

The choice of entity or whether to hold the investment directly impacts the U.S. income and estate taxes paid. Investors may choose a U.S. or foreign corporation, partnership, or trust to hold U.S. assets with the goal ultimately being to minimize or avoid income and estate taxes. Non-U.S. investors are often focused on effectively connected income from a U.S. trade or business (ECI).

Leveraged blocker structures may be available to address the concerns of foreign investors, so long as careful consideration is given to applicable U.S. tax rules based on a variety of circumstances. In addition, on Dec. 19, 2023, the IRS released IRS Chief Counsel Memo AM 2023-008 (IRS Transfer Pricing Memo), highlighting the impact of transfer pricing on leveraged blockers used by foreign investors to passively invest in U.S. assets along with other critical issues.

Listen as our panel outlines the benefits and potential risks of using blocker structures and other strategies to mitigate ECI. The panel will also examine the impact of such structures on investors who are not sensitive to ECI and discuss practical considerations for exiting blocker structures and other key issues.

Outline

  1. Blocker structure variations and choice of entity
  2. Potential income and estate tax issues
  3. Mitigating ECI exposure
  4. Recent IRS Transfer Pricing Memo
  5. Examples and additional strategies for tax efficiency

Benefits

The panel will discuss these and other key issues:

  • Income tax consequences of investing in U.S. assets through a foreign corporation
  • How can leveraged blockers be used to mitigate the impact of ECI?
  • Recent IRS Transfer Pricing Memo
  • Best practices for tax professionals structuring leveraged blockers

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify how U.S. income and estate tax impact U.S. situs property held by foreign investors
  • Determine if a leveraged blocker entity can be used to avoid taxes
  • Decide how the tax treatment of U.S. and foreign corporations holding assets differs
  • Ascertain how holding real estate in a foreign corporation could help circumvent U.S. taxes

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business, law or public firm experience at mid-level within the organization, overseeing and structuring investment transactions in U.S. real estate; supervisory authority over other attorneys, preparers/accountants. Knowledge and understanding of the Foreign Investment in Real Property Tax Act. Familiarity with different types of ownership entities and structures and related tax consequences for the foreign investor in U.S. assets.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).