Tax and Private Client Blog

Tax and Private Client Blog

Federal Income Taxation of Real Property Interests Held by Non-Residents

Non-resident alien individuals and foreign corporations are treated differently than United States tax residents for purposes of U.S. federal taxes. Listed below are the different processes for individuals and corporations.

Malta Pension Plan: “Moving” Real Estate and other Assets Offshore to Lower Taxes

The Malta Pension Plan (the “Malta Plan”) is a technique that allows U.S. and certain foreign taxpayers to contribute cash, appreciated real estate and securities to a “retirement plan” and pay zero taxes on certain distributions from such plan.

Taxation of LLC Equity Compensation

A common issue confronting business owners is how to give their workers “a piece of the pie” to align employee incentives with business owners’ goals. Below is a short summary of certain methods to grant employees equity or “equity-like” compensation.

Is an IRS Rule Invalid for Failure to Comply with The Congressional Review of Agency Rulemaking Act?

Although it was enacted back in 1996, many practitioners are unaware of the potential power of the Congressional Review of Agency Rulemaking Act (“CRA,”) to overturn any federal agency “rules.” The CRA provides that if certain procedures are not followed, a rule cannot "take effect."

Using Qualified Opportunity Zones to Maximize After-Tax Returns

On October 19, 2018, the IRS released much awaited guidance regarding tax incentives available pursuant to the recently enacted Qualified Opportunity Zone (“QOZ”) program. QOZs were created as part of the Tax Cuts and Jobs Act passed late last year.

Tax Efficient Investments for Domestic and Foreign Clients – Private Placement Life Insurance

Private Placement Life Insurance (PPLI) is a planning tool to help high net-worth individuals and families diversify their investments, while having all their investments accrue tax-free within a cash value insurance policy.

Tax Reform: A Step towards Territoriality

The recently enacted Tax Cuts and Jobs Act (the “Act”) provides a deduction to domestic C corporations that receive foreign source dividends from a “Specified 10%-Owned Foreign Corporation.” For purposes of this deduction, a Specified 10%-Owned Foreign Corporation is any foreign corporation that is (i) at least 10% owned by a U.S. corporation and (ii) not a Passive Foreign Investment Company (unless the foreign corporation is both a Passive Foreign Investment Company and a Controlled Foreign Corporation).

Introduction to the Transfer Certificate Complication for Non-Resident, Non-U.S. citizens

For the families of non-resident, non-U.S. citizens who own assets in the United States at the time of their death, the requirements of the U.S. estate tax laws, including the Transfer Certificate, can be a very unwelcome surprise.

Tax and Estate Planning for High Net Worth Chinese Clients

The Tax Cuts and Jobs Act of 2017 (P.L. 115-97, December 2, 2017, the “Tax Act”) introduced the most comprehensive reform to the Internal Revenue Code of 1986 since its enactment. The Tax Act not only affects U.S. citizens and residents but also significantly impacts non-U.S. persons that have a U.S. connection.

June 15th Filing Deadline for U.S. Taxpayers Living and Working Overseas is Here

The IRS recently issued a news release (IR News Release 2018-135) with a reminder that U.S. taxpayers living and working outside the U.S. must file (or request an extension of time to file) their 2017 federal income tax return by Friday, June 15th. A taxpayer, including a dual citizen or a resident alien, qualifies for the special June 15th filing deadline if both their tax home and abode are outside the United States and Puerto Rico.