Gain on Sales of U.S. Partnership Interests by Foreign Partners After Grecian Magnesite v. Commissioner
Entity vs. Aggregate Approach to Determine if Gain is Effectively Connected U.S. Income
Recording of a 90-minute CLE/CPE webinar with Q&A
This CLE webinar will provide tax counsel and advisers with a critical first look at the landmark Tax Court holding in Grecian Magnesite Mining v. Commissioner that certain gain realized by a foreign partner on the disposition of a U.S. partnership interest was neither U.S.-sourced nor effectively connected income (ECI) and was thus not taxable. The panel will discuss the import of Grecian Magnesite to foreign partners owning U.S. partnership interests, as well as to taxpayers who recognized taxable gain on prior dispositions.
- IRS position: Revenue Ruling 91-32: aggregate approach
- Tax Court holding in Grecian Magnesite: entity approach
- Remedial actions and tactics for non-U.S. partners paying tax on partnership sale gain
- Impact on existing partnership structures
The panel will discuss these and other critical issues:
- What actions should counsel advise a non-U.S. partner who paid tax on gain within the past three years from a sale of a U.S. partnership based on an aggregate approach to ECI determination?
- What is the potential impact of Grecian Magnesite's entity approach on domestic and/or foreign blocker corporations investing in U.S. partnerships?
- Which partnership structures will continue to require the aggregation approach to determining source and ECI of partnership sale gain amounts?
- What should tax counsel consider for existing partnership structures in light of the Grecian Magnesite holding?
Brian J. O'Connor
Mr. O'Connor co-chairs the firm's Tax and Wealth Planning Group and provides tax advice to partnerships... | Read More
Mr. O'Connor co-chairs the firm's Tax and Wealth Planning Group and provides tax advice to partnerships and to public and closely held businesses and their owners. Before coming to Venable, he worked as attorney-advisor with the IRS Office of Chief Counsel, assigned to projects and guidance involving partnerships and S corporations.Close
Mr. Thomma is Chair of the Firm's International Tax Practice. He focuses on corporate international tax planning... | Read More
Mr. Thomma is Chair of the Firm's International Tax Practice. He focuses on corporate international tax planning and U.S. taxation of foreign operations. He has managed large-scale global structuring projects, including the design, implementation, and post-implementation phases, for companies in various industries and jurisdictions. He has also served as the primary contact for multinational corporate clients, working closely with in-house tax, legal, treasury, and accounting departments to implement international legal and tax restructuring projects and post-M&A-integration projects.Close