Final Capital Gains Rules for Foreign Tax Credit Computations
Article Abstract:
Final regulations for the disposition of capital gains for foreign tax credit limitations (FTCL) are Regulation Sections 1.904(b)-1,2,3, and 4. These final regulations speak to the alterations made by the Tax Reform Act of 1976 and the Revenue Act of 1978. The formula for FTCL and equivalent United States Tentative Tax is included. Changes in the laws of 1976 and 1978 are reviewed, including 904 adjustments for loss recapture. The 1978 capital gain rules and foreign capital losses such as carryovers and carrybacks were specified. General rules and eight definitions for corporation gain are reviewed, including those pertinent to capital gain net income (CGNI).
Publication Name: Tax Management International Journal
Subject: Law
ISSN: 0090-4600
Year: 1984
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Passive foreign investment company rules are complex and unforgiving
Article Abstract:
New IRS proposals aim to cure problems arising from the 1986 passive foreign investment company (PFIC) provisions. The complex PFIC provisions are unforgiving in that errors cannot be corrected after the fact, so investors should heed them carefully. Intended to reduce perceived abuses by offshore funds, the PFIC rules do not specifically target them and in some cases have unintended consequences. Steps are suggested so that investors in controlled foreign corporations avoid PFIC anti-deferral rules.
Publication Name: Journal of Taxation of Investments
Subject: Law
ISSN: 0747-9115
Year: 1993
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