Sales Transactions of Controlled Foreign Corporation Stock: Avoiding Tax Impact For Buyers and Sellers
Navigating Sections 338(g) Elections and 901(m) Limitations for Buyers and Section 1248 Recharacterization Rules for Sellers
Recording of a 90-minute premium CLE/CPE webinar with Q&A
This CLE course will provide tax counsel with a practical guide to navigating the IRS rules governing sales transactions involving controlled foreign corporation (CFC) stock. The panel will discuss the IRC 901(m), limitations on foreign tax credit benefits of a Section 338(g) election for buyers of CFC stock, detail the mechanics of dividend recharacterization on sales, and identify relief available under Section 1248(b).
- Structuring purchase transactions when making a Section 338(g) election
- Section 901(m) limitations on 338(g) benefits
- Post-acquisition restructuring
- Scenarios where a 338(g) election is not optimal tax strategy
- Section 1248 dividend recharacterization rules
- Section 1248(b) relief
- Partnership interests owning CFC shares
The panel will discuss these and other important topics:
- When should a buyer of a CFC target not make a Section 338(g) election?
- What are the mechanics of making a Section 338(g) election in a purchase transaction?
- How does Section 901(m) operate to limit the tax benefits of a 338(g) election?
- When does Section 1248 dividend re-characterization apply?
- How does Section 1248(b) operate to limit the tax impact of dividend recharacterization?
- Special considerations for sales of partnership interests where the partnership owns stock in a CFC
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
Alison N. Dougherty, J.D., LL.M.
Ms. Dougherty has extensive experience assisting clients with U.S. tax reporting and compliance for offshore assets and... | Read More
Ms. Dougherty has extensive experience assisting clients with U.S. tax reporting and compliance for offshore assets and foreign accounts. She specializes in international tax compliance, planning and structuring as a subject matter leader of her firm's international tax practice. Her responsibilities include U.S. Federal and multi-state tax compliance for C corporations, S corporations, partnerships and individuals. She also provides transactional tax planning and structuring services.Close