Tag Archives: John Kaufmann

John Kaufmann Authors ‘Caveat Re-Emptor’

John Kaufmann, Of Counsel at Greenberg Traurig, has authored an article titled “Caveat Re-Emptor” for Volume 15, Issue 1 of CCH’s Journal of Taxation of Financial Products. The article examines the treatment of both “capital markets repos” (i.e., sale-repurchase transactions entered into with respect to liquid property, using standard documentation) and what he refers to as … Continue Reading

Derivatives Update: What You Should Know As We Enter 2017

This year has been full of surprises in the global markets with Brexit, the Republicans’ win of the executive branch and continuing control of the legislative branch in the U.S. and the impact of the privatization of energy markets in Mexico. In this GT Alert, we are simply going to address two critical proposals and … Continue Reading

Hints about New 871(m) Withholding Guidance

On Friday, Oct. 21, a senior official from the Internal Revenue Service said that new transition rules for the regulations for withholding on dividend equivalent payments on equity-linked derivatives under Section 871(m) will be issued in November. At a symposium sponsored by the Securities Industry and Financial Markets Association (SIFMA) in New York, Peter Merkel, … Continue Reading

‘Harvest’ Built-in Losses to Offset Capital Gains – The Trade Rule

As fund managers, insurance companies, and individual investors re-balance their portfolio at the end of the year, they often try to “harvest” built-in losses to offset capital gains. This implicates what tax lawyers call “the trade date rule.” With a few exceptions, the current income tax system has annual accounting periods, loss offsets, and a realization requirement. This … Continue Reading

New Withholding Tax Rules Will Impact Funds, Banks, and Insurance Companies

Regulations released under Section 871(m) of the Internal Revenue code in September of this year go into effect on Jan. 1, 2017.  These rules will have a significant effect on offshore funds and other investors which take positions in U.S. equity derivatives, as well as on broker dealers. Under these rules, all payments on derivatives … Continue Reading

Common Law Doctrines of Beneficial Ownership – Foreign Banks, U.S. Branches and Equity Swaps

When foreign banks doing business in the U.S. calculate gain or loss from equity swaps, they would do well to pay attention to common law doctrines of beneficial ownership. This is the case even though these doctrines have recently lost much of their relevance for withholding tax purposes. In a typical equity swap, one party (in … Continue Reading
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