Strategizing Multinational Tax Risks

• Proposed regulation section 1.951A-3(h)(1) (the “temporarily held property rule”) provides that temporarily held property acquired with “a principal purpose” of reducing a U.S. shareholder’s GILTI inclusion will be disregarded
• Basis adjustment rule for tested losses
• Only used tested losses should increase Subpart F E&P
• Basis reductions should only apply to actual transfers of stock
• Deemed Sec. 367(d) expense should reduce tested income
• Prop. Reg. § 1.951A-2(c)(5) anti-abuse rule (and authority to issue such rule)

TEI’s comments are well reasoned and should be reviewed to further understand the complexities, and need for added clarification going forward.