Phillip S. Gross has made available for download the Comments on Report Requesting Guidance on Application of the FIRPTA Exception for Publicly Traded Stock in the Partnership Context submitted by the Committee on Taxation of Business Entities of the New York City Bar Association on February 5, 2016.
The Abstract is as follows:
This report, which is submitted on behalf of the New York City Bar Association by its Committee on Taxation of Business Entities, discusses whether a partnership should be looked through for purposes of applying an exception to the Foreign Investment in Real Property Tac Act of 1980 (“FIRPTA”) rules for certain publicly traded stock, as set forth in Section 897(c)(3) of the Internal Revenue Code of 1986, as amended (“the Code”). This report proposes that the IRS clarify that Section 897(c)(3) requires a “look-through” approach as applied to partnerships that would test the applicable ownership threshold according to each partner’s proportionate interest in the publicly traded corporation.
Posted by Pooja Shivaprasad, Associate Editor, Wealth Strategies Journal