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Taxconsequencesforeign cooley

TAX CONSEQUENCES OF SELLING SHARES IN A PASSIVE FOREIGN INVESTMENT COMPANY

Cost Free
Presentation Length 1.0 hour

Recorded DateSeptember 29, 2017
CPE:Not available
(archived webinars do not offer CPE credits)
Subject AreaTaxes
Course LevelBasic
Course Description

This course will address the tax consequences of selling shares in a passive foreign investment company (PFIC) and the exceptions and elections that allow a shareholder to mitigate those consequences.  Subject to certain exceptions, the general rule is that gain on the disposition of PFIC stock is taxed as ordinary income and subject to an interest charge.  There are certain elections that may be made that allow a shareholder to mitigate the consequences of the punitive PFIC rules. 
 
Topics addressed in this course will include sales of PFIC stock in what otherwise would be a tax-free transaction, “qualified electing fund” elections, mark-to-market elections, and certain purging elections that remove the PFIC taint. 
 
Course Objectives:  The course is intended to provide its attendees with an understanding of the following:


  • General tax consequences of owning and selling shares in a PFIC

  • Application of PFIC rules in nonrecognition transactions (such as section 351 transactions)

  • Ways to remove the PFIC taint, such as by making a “qualified electing fund” election or mark-to-market election. 

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PLEASE NOTE: ARCHIVED WEBINARS DO NOT QUALIFY FOR CPE
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Adriana Lofaro Wirtz

Cooley LLP
Tax Attorney
awirtz@cooley.com
(212) 479-6022

Cooley

Adriana Lofaro Wirtz’s practice focuses on tax controversy and litigation. She represents clients at all phases of a tax controversy, from audit through litigation, including representing clients before the Internal Revenue Service Office of Appeals and acting as trial counsel. Adriana's recent matters cover a wide range of substantive tax issues, such as transfer pricing, debtequity classification, charitable contribution deductions, economic substance issues, foreign tax credits, real estate tax matters, aircraft-related issues and state and local tax matters, particularly in connection with the imposition of sales tax on SaaS. She has extensive experience defending taxpayers against the imposition of various types of penalties asserted by the Internal Revenue Service (IRS), including valuation misstatement, fraud and information return penalties. Adriana also advises clients on US reporting obligations with respect to foreign assets and represents clients in making offshore voluntary disclosures and streamlined submissions before the IRS. In addition, she has experience handling IRS collection matters and has successfully obtained relief for late tax elections. Prior to joining Cooley, Adriana served as attorney-advisor to Judge Carolyn P. Chiechi of the US Tax Court from 2007 – 2009. While attending law school, she completed an externship with the Internal Revenue Service Office of Chief Counsel. Adriana has been recognized by Super Lawyers as a "Rising Star" in tax.

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Stephanie Gentile

Cooley LLP
Tax Attorney
sgentile@cooley.com
(212) 479-6531

Cooley

Stephanie Gentile's practice focuses on taxation of partnerships and corporations in a wide variety of business matters, including mergers and acquisitions, fund formations and restructurings. Prior to joining Cooley, Stephanie was an associate at White & Case in their tax group.

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