Section 385 Regulations on Related-Party Debt
Avoiding Reclassification of Debt to Equity, Structuring Intercompany Debt Instruments to Withstand IRS Challenges
Recording of a 90-minute premium CLE/CPE video webinar with Q&A
This CLE/CPE course will provide critical analysis of the IRS regulations under Section 385 to reclassify certain related-party debt as equity for U.S. tax purposes. The panel will discuss the regulations' scope, examine what types of structures and transactions are subject to reclassification as equity, and offer practical guidance on ensuring an existing debt instrument is respected for U.S. income tax purposes.
- Overview of Section 385 related-party rules
- Entities and structures subject to recharacterization and potential tax consequences
- Miscellaneous provisions and issues
- Impact of US consolidated groups
- Rules relating to controlled partnerships
The panel will review these and other critical questions:
- What is the purpose of the final regulations?
- What entities are subject to the regulations?
- What common transactions and instruments are subject to possible recharacterization?
- What structuring steps must tax counsel take to ensure a related-party debt instrument will be respected as such for U.S. tax purposes?
Greg W. Featherman
Weil Gotshal & Manges
Mr. Featherman advises KPMG partners, employees and clients on corporate tax matters including domestic and... | Read More
Mr. Featherman advises KPMG partners, employees and clients on corporate tax matters including domestic and international mergers, acquisitions, spin-offs, other divisive strategies, restructurings, bankruptcy and non-bankruptcy workouts, and consolidated return matters. Prior to joining KPMG, he was an associate in the international law firm of Dewey & LeBoeuf LLP. He speaks frequently at seminars and conferences on subjects within his expertise.Close
International Tax Senior Manager
Mr. Gelernter's specialties are international tax services, primarily reorganizations and restructurings.| Read More
Mr. Gelernter's specialties are international tax services, primarily reorganizations and restructurings.Close