Treasury and IRS Release Final Regulations on Sales by Foreign Persons of Certain Partnership Interests

On September 21, the Department of the Treasury and the Internal Revenue Service released final regulations under section 864(c)(8). Section 864(c)(8) generally treats gain from the sale or exchange by a nonresident alien individual or foreign corporation of an interest in a partnership that is engaged in a trade or business in the United States as effectively connected with such trade or business. The final regulations generally adopt proposed regulations issued in 2018 that provided rules for determining the amount of gain or loss treated as effectively connected with the conduct of a trade or business within the United States under section 864(c)(8), including certain rules that coordinated section 864(c)(8) with other relevant sections of the Code.

Read More: Final Regulations
Read More: 2018 Proposed Regulations

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