IRC 962 Election for Corporate Tax Rate on Subpart F Income
Avoiding GILTI Complexities, Claiming Indirect Deemed Paid Foreign Tax Credits, and NOL Carrybacks
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE webinar with Q&A
This course will guide tax advisers in making a Section 962 election for an individual, trust, or estate to be taxed at corporate rates on foreign-sourced income under Section 951(a) and global intangible low-taxed income (GILTI) treated in the "same manner" as Subpart F inclusions. The panel will show how to identify income eligible for a 962 election, detail the potential tax benefits, including indirect foreign tax credits, discuss potential hazards to making the election, and discuss the interplay of this election with the expansion of NOL benefits under the CARES Act.
- GILTI regime and expansion of deemed inclusions of foreign earnings
- Section 962 election
- Eligible income under IRC 951(a) and 951A(f)
- Claiming IRC 960 indirect/deemed paid foreign tax credits
- The tax rate on elected foreign income inclusion
- Treatment of distributions where amounts previously included in gross income at the time of the election
- Areas of uncertainty
- GILTI deduction eligibility
- Qualified distribution treatment
- Where a Section 962 election may create higher tax after a deferral
- Impact of Section 962 elections on trusts and estates
- Who may make the Section 962 election?
- Impact of compressed fiduciary tables on effective tax rates
- New considerations for NOL relief provided by the CARES Act
- Making the election
- Calculating and reporting the tax
- Subsequent years
The panel will discuss these and other important issues:
- What types of income are eligible for corporate tax rates under a Section 962 election?
- How to calculate the tax impact of subsequent distributions of amounts included in gross income under Section 962 election
- Determining when a Section 962 election could result in tax increases
- When do recently enacted NOL benefits outweigh the benefit of making this election?
Thomas M. Giordano-Lascari
Karlin & Peebles
Mr. Giordano-Lascari is an accomplished income tax and transactional attorney specializing in international matters for... | Read More
Mr. Giordano-Lascari is an accomplished income tax and transactional attorney specializing in international matters for high net worth private clients. He is a frequent speaker on sophisticated international tax issues. Mr. Giordano-Lascari is also Chair of the Executive Committee of the Los Angeles County Bar Association Taxation Section.Close
Holthouse Carlin & Van Trigt
Mr. Samtoy’s practice specializes in international tax compliance and consulting services, with a focus on... | Read More
Mr. Samtoy’s practice specializes in international tax compliance and consulting services, with a focus on individuals, closely-held businesses, and hedge funds. He has particular expertise in structuring and reporting foreign manufacturing arrangements and foreign holding companies, and is experienced in foreign asset disclosure requirements, as well as foreign trust and estate reporting.Close
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CPE credit is not available on downloads.