Tax Readiness: How to comply with the new final stewardship regulations
Have you updated your approach to allocating and apportioning stewardship expense? The December 2020 final foreign tax credit regulations introduced a stock-based asset apportionment methodology for all taxpayers. But given the timing of these final regulations, many taxpayers were forced to estimate their stewardship for provision purposes using the asset apportionment methodology used for interest expense. Since many taxpayers are past provision season, now is the time to consider how, under the new regulations, you can lower stewardship expenses, which may in turn improve your ETR, your foreign tax credit position and your foreign-derived intangible income (FDII) outcome.
- An overview of stewardship expense
- The December 2020 final foreign tax credit regulations and their approach to the treatment of stewardship
- Entities to which stewardship applies
- The default/residual method and the direct allocation method
- Measuring US stock basis and characterizing the stock
- The seven-step approach to calculating stewardship expense
Date: Wednesday, April 7, 2021
Time: 7PM (2PM ET)
