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Assignment 2: Foreign Persons Trade / Business and U.S.-Sourced
Income

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.
4. Use at least three (3) quality resources in this assignment. Note:
Wikipedia and similar Websites do not qualify as quality resources.
Your assignment must follow these formatting requirements:
·
Be typed, double spaced, using Times New Roman font (size 12),
with one-inch margins on all sides; citations and references must