Imagine you are a CPA working as a tax professional. A foreign client engages you to determine how best for them to invest in a U.S. startup company that plans to sell automobile parts. The client's objective is to avoid or minimize any U.S. taxes that the foreign investor may incur. Assume that the client is forming this corporation with several other U.S. citizens.
Using the Internet research the rules related to foreign persons investing in U.S. companies and any tax implications for the foreign investor.
Write a three to four (3-4) page paper in which you:
- Based on your research, determine at least three (3) types of investments in the U.S. company that will most likely trigger a taxable event for your client and those that are least likely. Provide support for the rationale.
- Based on your research, evaluate at least three (3) types of U.S.-sourced income that your client is most likely to be impacted by U.S. taxes. Provide support for the evaluation.
- Recommend the most advantageous type of investment strategy that your client should take when investing in this U.S. company and make recommendations for avoiding or eliminating taxes on the client's U.S.-sourced income from the investment. Support the recommendations with examples.
- Use at least three (3) quality resources in this assignment.