ARLINGTON, Va., Feb. 28, 2012 — ARLINGTON, Va., Feb. 28, 2012 /PRNewswire-USNewswire/ — Tax Planning for Portfolio Investment into the United States by Foreign Individuals, a new Portfolio from Bloomberg BNA Tax Accounting, discusses the U.S. federal income tax effects of the principal kinds of portfolio investments that are made into the United States by foreign individuals, individuals who are classified as “nonresident aliens” for federal income tax purposes and as “nonresidents not citizens of the United States” for federal transfer tax purposes.
Written by Thomas St. G. Bissell, a former Attorney-Advisor for the Office of International Tax Counsel at the U.S. Treasury Department, Tax Planning for Portfolio Investment into the United States by Foreign Individuals examines how non-U.S. citizens may lawfully minimize or eliminate U.S. federal transfer taxes on their U.S. portfolio investments and U.S.-situs personal assets by holding them through a non-U.S. structure such as a holding company, trust, or partnership.
“Although avoidance of U.S. transfer taxes is usually the alien investor’s principal concern in utilizing a non-U.S. holding structure, there may be a number of U.S. federal income tax consequences to the manner in which the alien makes the investment,” explains Joel Bassett, BNA’s Tax Law Editor-International, “particularly if the alien becomes a U.S. resident for income tax purposes or if the alien has U.S. heirs. The existence of U.S. heirs may also encourage the alien to utilize a so-called “dynasty trust” so as to avoid U.S. transfer tax on the U.S. heirs in later generations.”
This Portfolio discusses potential U.S. federal taxes on non-investment personal assets (such as U.S. real property and U.S.-situs tangible personal property) and the potential effect of the HIRE Act on investments into the United States by foreign individuals, either directly or indirectly through a holding structure.
The author defines fundamental concepts and terms and discusses the federal income taxes and federal transfer taxes that can apply to portfolio and personal U.S. assets in the absence of restructuring by the non-U.S. individual who owns them. He also examines the use of a foreign holding company, the inheritance of a foreign holding company structure by a U.S. person, the use of a foreign trust, and the various U.S. federal tax problems that can arise if a foreign individual who has formed a foreign holding structure moves to the United States either temporarily or permanently.
Tax Planning for Portfolio Investment into the United States by Foreign Individuals is part of BNA Tax Accounting’s Premier International Tax Library and is available for individual purchase from BNA’s online store.
About the AuthorA retired partner at Coopers Lybrand LLP, Thomas St. G. Bissell is the author of numerous articles in professional tax publications. He is a member of the New York Bar (Retired Status), Tax Management International Advisory Board, and American Bar Association. He is also a former Attorney-Advisor for the Office of International Tax Counsel at the U.S. Treasury Department. Mr. Bissell earned degrees from Harvard College, Columbia Law School, and New York University.
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