Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
19 Cards in this Set
- Front
- Back
|
Interest sourcing |
If >=80% active business income is foreign over 3y, treated as foreign source Foreign banking branch=foreign source |
|
|
Domestic company dividend sourcing |
If >=25% of income is connected to US (for foreign company), US source |
|
|
Personal service income |
Sourced where sources performed Exception: in US for <90 days, earn <3k, for non-US organization |
|
|
Rent/royalties sourcing |
Sourced where property is located/where intangible is used |
|
|
Sell/exchange program (real, personal, inventory, seller-produced) |
Real—by location Personal—generally residence of seller Inventory—where sale takes place When seller produced property—income apportioned btw country of production & country of sale 50/50 |
|
|
CFC |
US-US, US source US-Intl, 50/50 |
|
|
Section 367 |
Re: cross-border transactions If US company=tax free Exception: inventory triggers recognition of gain, not losses, as well as recapture to the extent of gain |
|
|
CFC |
>50% made up of >=10% US SH |
|
|
Subpart F applies to who? |
CFCs for 30 days of the year |
|
|
What doesn’t subpart F apply to? |
•If the item is manufactured or sold in CFC country •Foreign-based company service income •Intangibles |
|
|
Exceptions to subpart F |
•If foreign Corp income is less than the lesser of 1M or 5% gross income, count 0 •If foreign income is >70%, count all of it •If tax rate of foreign country is 90%, disregard F |
|
|
Foreign tax credit |
•Limited to the US tax rate •Need >=183 days by 1/3 Y-1 days + 1/6 Y-2 days + >30 Y-3 days •Foreign Corp: US tax on US income •Domestic sub: withholding tax on income repatriation |
|
|
The due process clause requires: |
Requires minimum connection between state and the person, property, or transaction |
|
|
The commerce clause indicates: |
That substantial nexus is needed. Meaning physical presence. |
|
|
4 criteria for a state tax being valid on interstate commerce (CAT v Brady) |
1) Activity has substantial nexus within state 2) Tax is fairly apportioned 3) Tax does not discriminate against interstate commerce 4) Tax is fairly related to services provided by state |
|
|
What |
Income tax only |
|
|
What tax does CAT v Brady apply to? |
Income taxes |
|
|
What is OK under PL 86-272? |
•Recruitment, training, and evaluation of salespeople •Intervention in credit disputes by manager •Use of hotel rooms/homes for sales meetings •Setting up displays •Driving company cars |
|
|
Cat |
Meow |
