Outbound Investment: Tax Consequences for U.S. Investors Acquiring Stock or Debt Instruments of Foreign Issuers

In contrast to investing in domestic securities, differences for investing in foreign securities may apply due to the unique tax regimes applicable to foreign investments. These unique tax regimes include: rules that apply to controlled foreign corporations and passive foreign investment companies, the ability to use foreign tax credits to limit the amount of U.S. tax due on income that has already been taxed by a foreign jurisdiction, and the reporting rules that apply to foreign assets. Dive into the details with this practice note.

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