OIRA Receives Foreign Partner Sales Regulations

On December 4th the Office of Information and Regulatory Affairs (OIRA) received regulations pertaining to the treatment of foreign partners’ gains on the sale of a U.S. partnership.  The regulations will provide guidance on section 864(c)(8), enacted by the Tax Cuts and Jobs Act, which treats gain from the sale of an interest in a partnership engaged in the conduct of a U.S. trade or business as effectively connected with the conduct of that business, overriding the Tax Court’s decision in Grecian Magnesite Mining.  The regulations are anticipated to address treatment of partial sales of partnership interests and the characterization of gain as effectively connected income.  OIRA has 45 days to review the regulations as they were not designated for expedited review.

Read More:  Foreign Partner Sales Guidance Reaches OIRA Review  (paywall)


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