Foreign Taxation Homework: Foreign Taxpayers Engaged in a Trade or Business in the U.S.
Imagine you are an international tax consultant with a foreign client seeking to invest capital in the United States to take advantage of the growing economy. The foreign client is trying to evaluate alternative forms of business to maximize available tax benefits. Keep in mind that the client is requesting advice on the best methods to avoid or reduce taxes on income from the investment in a new business with other U.S. investors.
Use the Internet and / or Strayer Library to research the rules related to foreign taxpayers engaged in a trade or business in the U.S. and the related tax effects.
Write a three to four pages paper in which you:
• Based on your research, identify at least two methods of conducting business in the U.S. for your client, and compare the tax advantages and disadvantages of each that would have the greatest impact on the business. Provide examples to support the advantages and disadvantages identified.
• Examine at least three categories of U.S. sourced income that will generate U.S. taxes for your client. Provide support for your results.
• Provide two examples from within the last 3 years of how foreign capital investors were able to avoid or reduce taxes on income from their investments. Analyze the impact of the Tax Cuts and Jobs Act on each of your examples.
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.