The US Tax Court of Appeals for the Fifth Circuit has held that taxpayers' Subpart F income attributable to earnings of a controlled foreign corporation (CFC) invested in US property should be taxed as ordinary income, rather than as qualified dividend income eligible for reduced rates of taxation (Osvaldo Rodriguez and Ana M. Rodriguez v. Commissioner of Internal Revenue, No. 12-60533, 5 July 2013). The taxpayers were Mexican citizens and permanent residents of the United States (i.e. green card holders) who owned all of the stock of a CFC incorporated in Mexico. The taxpayers included earnings of the CFC that...