What is a section 958 A US shareholder?
A US shareholder with respect to a foreign corporation is a US person that owns, under IRC Section 958(a) and IRC Section 958(b), 10% or more of the shares (by vote or value) of the foreign corporation.
What is Section 958 A?
Rules For Determining Stock Ownership. Stock considered to be owned by a person by reason of the application of the preceding sentence shall, for purposes of applying such sentence, be treated as actually owned by such person. …
What is the family attribution rule?
Family attribution rules. An individual is treated as owning any interest that’s owned. by the individual’s spouse, children, grandchildren or parents. • A spouse’s interest is attributed to the other spouse.
What is constructive ownership rules?
Constructive ownership means you are closely related to the real owner — so closely, in fact, that the IRS thinks you should be treated like a owner, even if you are not one in real life. Example: Your spouse owns 100% of the stock of a corporation. You are treated as the constructive owner of your spouse’s stock.
Which is an example of the application of Section 318 ( a ) ( 1 )?
(b) The application of section 318 (a) (1), relating to members of a family, may be illustrated by the following example: Example. An individual, H, his wife, W, his son, S, and his grandson (S’s son), G, own the 100 outstanding shares of stock of a corporation, each owning 25 shares.
Is the Internal Revenue Code codified in Section 318?
The Internal Revenue Code codified the rule in section 318. The first part of the code refers to attribution from and next portion refers to the attribution to. “For purposes of those provisions of this subchapter to which the rules contained in this section are expressly made applicable—
What is the 50 percent limitation of Section 318?
However, for purposes of certain sections of the Code, such as sections 304 and 856 (d), the 50-percent limitation of section 318 (a) (2) (C) and (3) (C) is disregarded or is reduced to less than 30 percent.
How is the 50 percent rule applied in CFR 1.318?
For purposes of determining the amount of stock owned by H, W, or S for purposes of section 318 (a) (2) (C) and (3) (C), the amount of stock held by the other members of the family shall be added pursuant to paragraph (b) (3) of § 1.318-1 in applying the 50-percent requirement of such section.