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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Preparer

Date & Time
  • event Date

    Tuesday, March 2, 2021

  • schedule Time

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

  • timer Program Length

    110 minutes

Credit Information

  • 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).

$197.00
CPE
ALL

This course will clarify the recently released final regulations for the sale of personal property and inventory and explain the application of Section 864(c)(8), added by the 2017 Tax Act, to the sale of partnership interests. Sourcing determinations made under these guidelines are far-reaching and affect taxes paid in the U.S., abroad, and the calculations of foreign tax credits as well.

Faculty

Pamela A. Fuller
Senior Counsel (Tax, M&A, International)
Tully Rinckey PLLC and Zahn Law Group, LLP

Ms. Fuller is a corporate and international tax attorney with over 20 years experience in advising a wide range of clients -- including private clients and companies, joint ventures, private equity funds, HNW indviduals, C-Suite executives, "start-ups," and government entities -- on transactional, investment, and supply-chain strategies to achieve optimal tax and business results. She has deep expertise in structuring cross-border M&A transactions, and advising mobile international families. Her clients hail from a multitude of industries, including the burgeoning world of decentralized finance (DeFi). Pamela is also a seasoned taxpayer advocate, with decades of experience resolving complex U.S. federal, state, and foreign tax controversies. 

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Chadwick P. Rowland
Attorney
IRS Office of Associate Chief Counsel (International)

Mr. Rowland is an Attorney in the Office of Associate Chief Counsel (International), Branch 4. He specializes in the taxation of intangible property transfers and certain transactions involving partnerships, as well as cross-border mergers, acquisitions, and other restructurings. Mr. Rowland has been working in Branch 4 since 2018. 

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Ronald M. Gootzeit
Attorney
IRS Office of Associate Chief Counsel (International)

Mr. Gootzeit is an Attorney in Branch 4 of the Office Associate Chief Counsel (International) at the Internal Revenue Service where he primarily works on cross-border partnership, check-the box, and reporting issues. He has previously worked in private practice (at an accounting and a law firm) and as an attorney advisor at the United States Tax Court, in addition to the Office of Associate Chief Counsel (Passthroughs and Special Industries). 

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Raymond J. Stahl
Principal
Ernst & Young

Prior to joining EY, Mr. Stahl was a special counsel in the Office of the Associate Chief Counsel (International) at the IRS. In that role, he was responsible for assisting in the development and implementation of international tax guidance. Most recently, Mr. Stahl was one of the principal drafters of international guidance under the TCJA, including guidance relating to the Section 965 transition tax, the new foreign branch basket and the new partnership/ECI regulations under Section 864(c)(8). Prior to that, Mr. Stahl served as the Assistant to the Branch Chief in Branch 5 (ACCI).

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Description

U.S. taxpayers are often required to determine the "source" of their gross income items--a threshold determination that can have a dramatic impact on U.S. tax outcomes. The historic determination is evolving to embrace a geographically mobile economy and one not tied to a physical location.

The 2017 Tax Act changed the source-of-income rules for the sale of personal property and inventory. Final regulations released in September 2020 explain the application of these rules. The rules vary for inventory purchased versus produced and rely on existing Treasury Regulation Section 1.954-3(a)(4) for its definition of produced property. These regulations are particularly crucial for businesses manufacturing property overseas for sale in the U.S. and foreign entities with U.S. locations.

For dispositions of partnership interests, IRC 864(c)(8) stipulates that the gain or (loss) from a disposition is treated as effectively connected income (ECI) to the extent it would have been ECI had the assets been sold at fair market value. The regulations provide a three-step process to calculate this amount.

Sourcing income under these new regulations is extremely complex. The interplay of the new regulations with existing sourcing rules and U.S. income tax treaties makes them more so.

Listen as our panel of international tax experts provides practical advice and illustrative examples explaining the sourcing-of-income rules. Particularly, they will discuss applying complex and overlapping guidance to sales of personal property, inventory, and the disposition of partnership interests.

Outline

  1. Sourcing income: overview
  2. Sourcing income from sales of inventory
  3. Sourcing gains and losses from dispositions of interests in partnerships
  4. Foreign tax credit regulations
  5. Illustrations

Benefits

The panel will review these and other critical issues:

  • Applying the treaty coordination rules included in the final partnership disposition regulations
  • The impact of the final IRC 1.864(c)(8)-1 regulations on the calculation of foreign tax credits
  • Determining whether an activity is a production activity
  • How intangible assets are properly sourced
  • How are the new sales of property regulations intended to interact with existing profits provisions in treaties?
  • Using the three-step process to determine applicable ECI on partnership interest dispositions

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify the impact of recent regulations on the calculations of foreign tax credits
  • Determine the effective dates of the final regulations under Section 864(c)
  • Ascertain distinctions between property produced and purchased
  • Decide how sales of intangible assets are sourced for U.S. income taxation

  • 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 or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of international taxation including residency determination, foreign entity classifications, application of treaty benefits, as well as GILTI, Subpart F, and the related Section 250 deductions.

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).