Sales of Partnership Interests by Foreign Persons: Effectively Connected Gain and Section 1446(f) Withholding | Practical Law

Sales of Partnership Interests by Foreign Persons: Effectively Connected Gain and Section 1446(f) Withholding | Practical Law

This Note discusses the potential taxation of foreign persons on the sale of interests in partnerships engaged in a US trade or business and the obligations of buyers to withhold under IRC Section 1446(f). It discusses when a foreign person transferring a partnership (or LLC interest) is subject to tax on effectively connected gain, buyers' obligations to withhold, and withholding tax exceptions.

Sales of Partnership Interests by Foreign Persons: Effectively Connected Gain and Section 1446(f) Withholding

by Practical Law Corporate & Securities
MaintainedUSA (National/Federal)
This Note discusses the potential taxation of foreign persons on the sale of interests in partnerships engaged in a US trade or business and the obligations of buyers to withhold under IRC Section 1446(f). It discusses when a foreign person transferring a partnership (or LLC interest) is subject to tax on effectively connected gain, buyers' obligations to withhold, and withholding tax exceptions.