BarbriSFCourseDetails
  • videocam Live Online with Live Q&A
  • calendar_month October 23, 2025 @ 1:00 p.m. ET./10:00 a.m. PT
  • signal_cellular_alt Intermediate
  • card_travel Tax Law
  • schedule 90 minutes

Gain on Sales of U.S. Partnership Interests by Foreign Partners: Sections 864(c)(8) and 1446(f)

Determining and Reporting Gain on Effectively-Connected U.S. Source Income

$347.00

This course is $0 with these passes:

CLE
CPE
ALL
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Description

Tax reform ushered in significant changes to international taxation, including a provision that supersedes the Tax Court's decision in Grecian Magnesite with amended Sections 864(c)(8) and 1446(f). Tax counsel and advisers must navigate the filing requirements under current tax law and implement effective planning techniques to limit tax liability upon foreign persons' disposition of U.S. partnership interests.

The sale, exchange, or other disposition of a partnership interest held by foreign persons may trigger the withholding and filing requirements under Sections 864(c)(8) and 1446(f). Under current tax law, dispositions of partnership interests by foreign owners include all partnership assets that are effectively connected to a U.S. trade or business. Section 864(c)(8) of the Internal Revenue Code provides that effectively-connected income (ECI) includes the gain or loss on the sale of an interest in a partnership engaged in a U.S. trade or business.

Section 1446(f) provides that if any gain from a sale or exchange of an interest in a partnership is treated under Section 864(c)(8) as effectively connected with the conduct of a trade or business within the U.S., then the transferee must collect a 10 percent withholding tax from any seller of a partnership interest. If the buyer fails to withhold any amount required under Section 1446(f), the issuer partnership is liable for the unpaid withholding tax.

Listen as our experienced panel critically examines the structuring and reporting impacts of the new tax law provisions on non-U.S. persons holding U.S. partnership interests.

Presented By

Patrick J. McCormick
Partner
Rimon, P.C.

Mr. McCormick specializes in the areas of international taxation and multinational trusts and estates. He has published assorted national articles and given innumerous national and local presentations on assorted areas of international tax. He is licensed to practice in the State of New Jersey and the Commonwealth of Pennsylvania.

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William R. Skinner
Partner
Fenwick & West LLP

Mr. Skinner focuses his practice on U.S. international taxation, with a particular emphasis on tax planning and international corporate transactions. He has broad experience in international tax issues for U.S. corporations, foreign corporations, and high net-worth individuals, and has represented clients across a variety of industries. He teaches international taxation as an adjunct professor in San Jose State University’s MST program, and speaks and writes frequently on international and corporate tax issues.

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Credit Information

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

  • BARBRI is a NASBA CPE sponsor and this 90-minute webinar is accredited for 1.5 CPE credits.

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


  • Live Online


    On Demand

Date + Time

  • event

    Thursday, October 23, 2025

  • schedule

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

I. Determining ECI under current tax law

II. Section 1446(f); calculating the amount realized on the disposition of a partnership interest

III. Remedial actions and tactics for non-U.S. partners paying tax on partnership sale gain

IV. Impact on existing partnership structures

The panel will review these and other critical issues:

  • What actions should counsel recommend to a non-U.S. partner selling a U.S. partnership based on an ECI determination?
  • What is the impact of the tax rules on domestic and foreign blocker corporations investing in U.S. partnerships?
  • What are the methods of determining the source and calculating ECI of partnership sale gain amounts?
  • What should tax counsel consider for existing partnership structures under current tax law?

Learning Objectives

After completing this course, you will be able to:

  • Recognize the impact on non-U.S. persons using foreign blocker corporations to hold U.S. partnership interests
  • Identify non-U.S. persons who may be adversely affected by Sections 864(c)(8) and 1446(f)
  • Determine steps tax counsel and advisers should take for both existing partnership structures and for non-U.S. persons who have reported taxable gain or loss from the sale of U.S. partnership interests
  • 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 U.S. taxpayers' transactions involving foreign partnerships and vice versa; supervisory authority over other attorneys, preparers/accountants. Knowledge and understanding of tax recognition standards for U.S.-sourced and effectively connected income; familiarity with U.S. and foreign partnership structures.

BARBRI 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

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

BARBRI CE webinars-powered by Strafford-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .