Due Week 4 and worth 200 points
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 or Strayer databases , 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 :
1 . 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 .
2 . 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 .
3 . 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 .