[Webinar] Tax Treatment of Leveraged Blockers Used by Foreign Investors: Recent IRS Guidance, Deal Structures, Tax Planning

June 7th, 1:00 pm - 2:30 pm EDT
Strafford
Contact
LinkedIn
Facebook
X
Send
Embed
June 7th, 2024
1:00 PM - 2:30 PM EDT
$ 347.00

A live 90-minute premium CLE/CPE video webinar with interactive Q&A

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.

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

FACULTY

Flignor, Paul

Paul Flignor
Principal Economist
DLA Piper

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

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.

Hung, Shiukay

Shiukay Hung
Partner
DLA Piper

Mr. Hung is Partner and Co-Chair of DLA Piper’s National REIT Tax Practice. He advises public and private REITs on REIT taxation matters. In addition, he specializes in representing sovereign wealth funds (SWFs), foreign pension funds and non-US family offices. Mr. Hung is recommended as a leading lawyer by Chambers USA 2023 and Legal 500 United States 2023.

Kirpalani, Neeraj

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.

Virmani, Aalok

Aalok Virmani
Partner
DLA Piper

Mr. Virmani advises investment fund sponsors on federal income tax matters. In particular, he focuses on the domestic and international tax aspects of forming, organizing, and operating private equity funds, private equity real estate funds, venture capital funds, hedge funds, debt funds and secondary funds. Mr. Virmani's practice includes counseling family offices with respect to establishing investment platforms and management incentive arrangements. He also regularly represents clients with respect to GP-led fund restructurings, U.S. and non-U.S. investor representations, secondary transactions, and minority investments in fund sponsors. Mr. Virmani spent significant time in-house as a principal at Equity International, a private equity firm that invests in non-U.S. real estate companies.

PRESENTED BY:

Strafford
Strafford
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Strafford on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign Up Log in
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide