Real Estate Holding Structures: Single-Tier Structures With No Estate Tax Risk
HodgenLaw PC Blog
by Phil Hodgen
1M ago
The “Real Estate Holding Structure” Series This is the fourth episode of the real estate holding structure series. In this series I walk you through the thought process of a non-resident who wants to buy a home in the United States for personal or family use–not for rental. ​Episode 1 – Thirteen single-level holding structures exist for possible use. (We’ll deal with multi-level holding structures later. Three are eliminated: forbidden, logically impossible, or wildly impractical. ​Episode 2 – Of the ten remaining single-level holding structures, we eliminate three because they are ..read more
Visit website
Real Estate Holding Structures: “Maybe” Means “No”
HodgenLaw PC Blog
by Phil Hodgen
2M ago
The “Real Estate Holding Structure” Series This is the third episode of the real estate holding structure series. In this series I walk you through the thought process of a non-resident who wants to buy a home in the United States for personal or family use–not for rental. Episode 1 – Thirteen single-level holding structures exist for possible use. (We’ll deal with multi-level holding structures later. Three are eliminated: forbidden, logically impossible, or wildly impractical. Episode 2 – Of the ten remaining single-level holding structures, we eliminate three because they are guaranteed to ..read more
Visit website
Real Estate Holding Structures Guaranteed to Cause Estate Tax
HodgenLaw PC Blog
by Phil Hodgen
2M ago
We continue in the series about holding structures for nonresidents who buy U.S. real estate.  In the last episode . . . In the first episode, I showed that there are 13 types of single-level holding structures that can be used. I also showed you that three of them are prohibited, impossible, or impractical. We cut the list from 13 to 10 candidates for holding structures. We knocked off three choices last time (shown in light gray on the illustration above). Now, the estate tax knock-out punch Now let’s administer the knock-out punch of estate tax to the remaining ten structure choices a ..read more
Visit website
Nonresident Investor in U.S. Real Estate: Impossible Structures
HodgenLaw PC Blog
by Phil Hodgen
3M ago
This is the beginning of a new series. It’s a “nonresident investor in U.S. real estate” series. I’m going to analyze a simple (!) client question: “I am a nonresident of the United States. I am going to buy a condominium for my child to live in while she goes to school. What’s the best way for me to do this to minimize my U.S. tax?” This translates to “who holds recorded title to the real estate? And that, in tax lawyer language, means “What holding structure should I tell my client to use?” The Single-Level Holding Structure Choices Here are (almost) all the holding structure choices availab ..read more
Visit website
Form 5471 Webinar Series: Subpart F Income
HodgenLaw PC Blog
by Phil Hodgen
3M ago
Subpart F income can be considered passive income from a controlled foreign corporation. US shareholders report their pro rata share of Subpart F income as gross income on their income tax returns. In this session, we explore the different types of Subpart F income so you know when you see it and how it flows through to the US shareholder’s income tax return. Presented by Phil Hodgen on August 25, 2023. To join future webinars, sign up to our newsletter and receive updates. 2023-08-25-International-Tax-Lunch-Form-5471-Subpart-FDownload The post Form 5471 Webinar Series: Subpart F Income appea ..read more
Visit website
Homes in Foreign Corporations: The Pit Boss Risk
HodgenLaw PC Blog
by Phil Hodgen
4M ago
People prefer the cheap, expedient, and familiar – even when this means visible, latent risks. (I am a people, too). This article is about one of those risks. The big lesson of survivorship bias is that you should optimize for being a survivor. I want you, the nonresident investor in U.S. real estate, to see, at least, a latent tax risk. Everything is fine now and has been for decades, because the Emperor is currently attending to other tasks. But there are tells . . . . Nonresidents, their U.S. homes, and corporate structures Nonresidents buy U.S. homes for personal use – by themselves, by fa ..read more
Visit website
Form 5471 Webinar Series: Global Intangible Low Taxed Income
HodgenLaw PC Blog
by Phil Hodgen
4M ago
Global Intangible Low-Taxed Income can be considered active business income of a controlled foreign corporation. The calculation rules are almost comically baroque in their complexity. In this session, we will explore how this type of income is calculated and how it is reported on the US shareholder’s income tax return. Presented by Phil Hodgen on September 29, 2023. To join future webinars, sign up to our newsletter and receive updates. Form-5471-Episode-6-Global-Intangible-Low-Taxed-Income-2023-09-29Download The post Form 5471 Webinar Series ..read more
Visit website
Which Bucket Do I Put This Section 951A PTEP In?
HodgenLaw PC Blog
by Phil Hodgen
4M ago
Latest developments: Use the foreign tax credit against net investment income tax liability An important tax case was decided recently in the Court of Claims. The IRS lost and the taxpayer won, which always makes my little heart skip a beat with happiness. The case is Christensen v. United States. Warning: the opinion is 48,000+ words long. It’s a book. The IRS has always said you can only use foreign tax credit to offset U.S. income tax liability. You cannot use foreign tax credit against your net investment income tax liability. An American couple living in France sold stock. The capital gai ..read more
Visit website
How to Put U.S. Real Estate into a Corporate Holding Structure, Part 1
HodgenLaw PC Blog
by Phil Hodgen
5M ago
Introduction This is the first episode of a multi-episode series. Nonresidents who own U.S. real estate in their own names face estate tax risk when they die. The estate tax risk can be prevented by changing the way in which U.S. real estate is owned. I use: a foreign parent/domestic subsidiary corporate structure (described in this series); or a trust structure, with an irrevocable nongrantor trust. Either structure, properly constructed, will put the U.S. real estate out of harm’s way for U.S. estate tax purposes. The corporate structure I am going to walk you through the steps needed to t ..read more
Visit website
IRC §951A Exists to Solve a Problem Created by IRC §245A
HodgenLaw PC Blog
by Phil Hodgen
6M ago
Today, Let’s ask a “Why?” question and make sense of why IRC §951A exists. TCJA’s impact: a myriad of details and confusion IRC §951A arrived in late 2017 and caught everyone’s attention. A new tax! Everything in CFC-land became vastly more complicated. The Tax Cuts and Jobs Act promised a new, modern, efficient “territorial” tax system. Yet we practitioners quickly determined that the whole mess — “Global Intangible Low-Taxed Income” and the collateral damage to earnings and profits tracking, foreign tax credits, etc. etc. — was . . . well, let’s not use potty-mouth words, now, Phil. But did ..read more
Visit website

Follow HodgenLaw PC Blog on FeedSpot

Continue with Google
Continue with Apple
OR