EYEY

US Tax Court holds that non-US partnership was securities dealer engaged in US trade or business, liable for partnership withholding tax

|Tax Alerts, Asset Management, Banking &a ...|United States
United States

  • A US-based asset manager's activities were attributed to a foreign partnership and were not within any safe harbors because the activities were not limited to managing investments or trading in stocks or securities.
  • The foreign partnership was found to be a "dealer in securities" and required to recognize gain under the "mark-to-market" rule of IRC Section 475(a)(2).
  • Gain or loss recognized by the f…

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