Page 225 - International Taxation IRS Training Guides

Foreign Partner with

US Trade or Business

capital
 Revenue Ruling 91-32 treated a foreign partner’s

gain or loss on the sale of a partnership interest as

connected with a US trade or business if, and to
effectively
would have
the extent that, the sale of the underlying assets
resulted in effectively
connected income for the foreign

partner

 In 2017, the Tax Court in Grecian Magnesite Mining v.

the ruling in finding that a
Commissioner refused to follow

foreign partner
was not subject to US tax on the sale of a
partnership interest

 TCJA enacts new
IRC 864(c)(8) generally following
Revenue Ruling 91-32

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