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Tax Treatment of Leveraged Blockers Used by Foreign Investors: Recent IRS Guidance, Deal Structures, Tax Planning

A live 90-minute premium CLE/CPE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
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Tuesday, April 2, 2024

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, March 8, 2024

or call 1-800-926-7926

This CLE/CPE webinar will provide tax counsel with a thorough and practical guide to structuring strategies and tax considerations for foreign investors in U.S. assets utilizing leveraged blockers and other tax planning mechanisms. The panel will discuss recent IRS guidance, key tax considerations in structuring deals involving foreign investors, transfer pricing analysis, and other key items.

Description

More and more foreigners are investing in U.S. real estate, funds, and other assets. Tax professionals must implement strategies to avoid and minimize adverse tax consequences stemming from these investments.

The choice of entity or whether to hold the investment directly impacts the U.S. income and estate taxes paid. Investors may choose a U.S. or foreign corporation, partnership, or trust to hold U.S. assets with the goal ultimately being to minimize or avoid income and estate taxes. Non-U.S. investors are often focused on effectively connected income from a U.S. trade or business (ECI).

Leveraged blocker structures may be available to address the concerns of foreign investors, so long as careful consideration is given to applicable U.S. tax rules based on a variety of circumstances. In addition, on Dec. 19, 2023, the IRS released IRS Chief Counsel Memo AM 2023-008 (IRS Transfer Pricing Memo), highlighting the impact of transfer pricing on leveraged blockers used by foreign investors to passively invest in U.S. assets along with other critical issues.

Listen as our panel outlines the benefits and potential risks of using blocker structures and other strategies to mitigate ECI. The panel will also examine the impact of such structures on investors who are not sensitive to ECI and discuss practical considerations for exiting blocker structures and other key issues.

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Outline

  1. Blocker structure variations and choice of entity
  2. Potential income and estate tax issues
  3. Mitigating ECI exposure
  4. Recent IRS Transfer Pricing Memo
  5. Examples and additional strategies for tax efficiency

Benefits

The panel will discuss these and other key issues:

  • Income tax consequences of investing in U.S. assets through a foreign corporation
  • How can leveraged blockers be used to mitigate the impact of ECI?
  • Recent IRS Transfer Pricing Memo
  • Best practices for tax professionals structuring leveraged blockers

Faculty

Flignor, Paul
Paul Flignor

Corporate Finance - Aalok Virmani
DLA Piper

Mr. Flignor concentrates his practice in intercompany pricing and intellectual property valuation.

Mr....  |  Read More

Hung, Shiukay
Shiukay Hung

Partner
DLA Piper

Mr. Hung is Partner and Co-Chair of DLA Piper’s National REIT Tax Practice. He advises public and private REITs...  |  Read More

Kirpalani, Neeraj
Neeraj Kirpalani

Senior Managing Economist
DLA Piper

Mr. Kirpalani provides a range of transfer pricing services with a focus on intercompany financing. He has...  |  Read More

Virmani, Aalok
Aalok Virmani

Partner
DLA Piper

Mr. Virmani advises investment fund sponsors on federal income tax matters. In particular, he focuses on the domestic...  |  Read More

Attend on April 2

Early Discount (through 03/08/24)

See NASBA details.

Cannot Attend April 2?

Early Discount (through 03/08/24)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. CPE credit is not available on recordings. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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