Subpart F Treatment of Gain on the Sale of Property Leased or Licensed

Lowell Yoder wrote this bylined article to provide an overview of how the Subpart F foreign personal holding company income (FPHCI) rules apply to gain on the sale of property owned by a foreign subsidiary that is leased or licensed. Mr. Yoder concluded that such a gain in a transaction with an unrelated or disregarded entity is not FPHCI, but a gain in a deal with a related entity is FPHCI “and there is no exception. In [this] last situation, consideration may be given to using a disregarded entity structure,” he added. Read the full article