Interested in training for your team? Click here to learn more

Repatriation of Untaxed Foreign Earnings: Strategies to Minimize Tax Liability, Section 965 Issues, Pitfalls to Avoid

Section 245A DRD, Section 311(b) Distributions, Section 964(e) Stock Sales, Section 1248 and Tracking Untaxed Foreign Earnings

Recording of a 90-minute premium CLE/CPE video webinar with 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.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Thursday, July 20, 2023

Recorded event now available

or call 1-800-926-7926

This CLE/CPE webinar will provide tax counsel an in-depth analysis of methods to repatriate previously untaxed foreign earnings under current tax law. The panelist will offer tactics to mitigate taxes paid by controlled foreign corporation (CFC) shareholders, Section 965 issues, Section 245A dividend received deduction from certain foreign corporations distributions, Section 311(b) distributions, Section 964(e) stock sales, Section 1248 and tracking untaxed foreign earnings, and other key issues that must be considered.

Description

For U.S. taxpayers, the repatriation of foreign earnings back to the U.S. is one of the most complex aspects of current U.S. tax law. Income earned overseas that has not been taxed in the foreign country may be a taxable event once the income is distributed. Tax counsel must be well versed in the application of U.S. tax rules regarding foreign earnings and available planning tools to minimize tax liability for U.S. taxpayers.

The GILTI rules capture and tax income that was not taxed under Subpart F or would not otherwise be taxed in the United States. However, a CFC can continue to have untaxed earnings. Ten percent of a CFC shareholder's allocable portion of qualified business asset investment less specified interest expense is excluded from GILTI. Untaxed income is captured and accumulated as Section 1248 E&P. These accumulated earnings under Section 1248 can provide tax-saving and planning opportunities.

In addition, Section 311(b) provides that if a corporation distributes property at a fair market value that is greater than the corporation's basis in the property, the gain will be treated as a sale to the distributee at its fair market value. This, coupled with gain recharacterization requirements of Section 1248 and the 245 DRD (dividend received deduction), presents a significant tax-saving opportunity for multinational companies and U.S. taxpayers.

Listen as Michael Dana, Partner at Husch Blackwell, provides tactics to mitigate taxes paid by CFC shareholders, Section 965 issues, Section 245A dividend received deduction from certain foreign corporations distributions, Section 311(b) distributions, Section 964(e) stock sales, Section 1248, and other key items for repatriating foreign earnings.

READ MORE

Outline

  1. Repatriation of foreign earnings: overview and applicable rules
  2. Section 245A dividends received deduction
  3. Section 1248 E&P, untaxed foreign earnings
  4. 311(b) distributions
  5. 964(e) stock sales
  6. Planning techniques and best practices for tax counsel

Benefits

The panelist will cover these and other critical issues:

  • Application of Section 1248
  • Minimizing tax on earnings repatriated as Section 311(b) distributions
  • Utilizing Section 245A DRD
  • Mitigating tax on Section 964(e) stock sales

Faculty

Dana, Michael
Michael Dana
Partner
Husch Blackwell

Mr. Dana provides tax and corporate law advice to businesses at all phases of operation, from initial business...  |  Read More

Access Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. CPE credit is not available on recordings. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video