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Beware of the PTP Rules: Who Ends up Liable...
Hearing Date on the Section 871(m) Proposed Regulations Approaches
The Section 1411 Net Investment Tax is Around the...
An agreement between a NOL target and a group...
Private equity funds often have lock up periods that prevent limited partners from transferring...
For those who have not followed this closely, section 871(m) was enacted with the...
Section 1411, which was enacted with the Health Care and Education Reconciliation Act of...
Section 382 generally limits the availability of NOLs for post-acquisition periods if there is...
Private equity funds often have lock up periods that prevent limited partners from transferring their interest. However, these periods eventually expire and limited partners who want to exit the fund early have the option of disposing their interest on the secondary market. This option is often conditioned on providing a legal opinion of counsel...
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For those who have not followed this closely, section 871(m) was enacted with the 2010 HIRE Act and shut down certain dividend equivalent strategies that utilized swaps in order to circumvent the U.S.withholding rules on dividends. Early this year the IRS issued proposed regulations that address the application of Section 871(m). The proposed regulations...
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Section 1411, which was enacted with the Health Care and Education Reconciliation Act of 2010, will impose a 3.8% tax on net investment income earned by individuals. The tax is designed to mimic the SECA tax imposed on self-employed service providers. One group of taxpayers who will be affected by the tax includes fund...
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Section 382 generally limits the availability of NOLs for post-acquisition periods if there is a 5% shareholder ownership change in the target company. This provision is particularly important to both vulture investment funds and the target bankrupt companies the funds are acquiring. NOLs are often priced in the deal and the parties to the acquisition go...
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The idea of a financial transaction tax has been largely unsuccessful in the United States. Last year’s proposal by Representative Peter DeFazio and Senator Tom Harkin to impose a 0.03% tax on financial transactions did not get any traction in Congress. Similarly, the proposals to tax currency transactions failed without much support. The latest...
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