Tax considerations in selecting commodity and securities trading entities
Article Abstract:
Investors concerned with entity choice and country of residence to minimize taxation of a stock investing subsidiary should be aware of the safe harbors available under IRC section 864(b)(2). The commodities trading safe harbor provides that persons will not be considered engaged in a trade or business in the US if they or their partnership limits their activities to commodities trading. The securities trading safe harbor is essentially identical to the commodities safe harbor, except that the taxpayer's principal place of business must not be in the US.
Publication Name: Journal of Taxation of Investments
Subject: Law
ISSN: 0747-9115
Year: 1995
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Derivatives trading now has a "safe harbor."
Article Abstract:
IRS proposed regulations under IRC section 864 contain new safe harbor rules for some foreign persons conducting derivatives trades in the US. The regulations would exempt income from such derivatives from US taxation if the trading is done by persons who are not dealers in derivatives or other securities and who enter into the derivatives contracts for their own account. The expansion of the safe harbor rules in this area is a welcome implementation of legislative intent.
Publication Name: Journal of Taxation of Investments
Subject: Law
ISSN: 0747-9115
Year: 1999
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Tax considerations in selecting commodity and securities trading entities and advisers
Article Abstract:
The courts have developed strict rules governing the IRC section 162 deduction of business expenses for securities or commodity trading partnerships based on trade or business status. Partnerships that contract out the fund management must show active oversight of the activities performed by the third-party advisers to be eligible for the deductions.
Publication Name: Journal of Taxation of Investments
Subject: Law
ISSN: 0747-9115
Year: 1996
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- Abstracts: The insider story; rules against trading stocks, other securities with confidential information may broaden. Cravath lawyer admits to insider trading: indictment claims brother made more than $250,000 from illegal stock buys
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