IRC 962 Election for Corporate Tax Rate on Subpart F Income
Avoiding GILTI Complexities, Claiming Indirect Deemed Paid Foreign Tax Credits, and NOL Carrybacks
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), and discuss potential hazards to making the election.
- 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
- 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
- Making the election
- Calculating and reporting the tax
- Alternatives to the Section 962 election
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 NOL benefits outweigh the benefit of making this election?
Alexis M. Maguina
Fenwick & West
Mr. Maguina focuses his practice on a broad range of domestic and international tax matters, such as mergers and... | Read More
Mr. Maguina focuses his practice on a broad range of domestic and international tax matters, such as mergers and acquisitions, corporate restructurings, private equity funds and tax controversies.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
William R. Skinner
Fenwick & West
Mr. Skinner focuses his practice on U.S. international taxation, with a particular emphasis on tax planning and... | Read More
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.Close
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