Atlanta lawyers Brian Casey and Tom Sherman and San Francisco lawyer Jaremi Chilton co-authored an article examining the Tax Cuts and Jobs Act (TCJA) and the changes affecting life settlements investment fund tax structuring. In particular, the authors point out that “the TCJA has drastically altered the ability of certain 10 percent or greater U.S. resident investors in offshore investment funds classified as controlled foreign corporations to achieve those pre-TCJA U.S. income tax advantages.”
The authors also examine in detail global intangible low-taxed income (GILTI), noting: “While not technically a Subpart F income category, GILTI borrows from the U.S. Subpart F regime in many respects and is intended to require some minimal level of U.S. income tax be paid currently by U.S. shareholders of CFCs that have net profits and that utilize minimal depreciable assets in their businesses. Importantly, Code Section 951A’s GILTI inclusions are not eligible for qualified dividend treatment."
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