Okay for this video i'm going to cover the irs form 8858 this is a disclosure that goes along with a u.s tax return when that u.s person owns equity in a foreign disregarded entity so i've got a sample 88 in front of us here and then one slide with some of the background information on the form what needs to be completed and then the fact pattern that we'll be looking at when we go through the example so what is the 8858 again it's generally included with the us income tax return right so if you're a us person and you're filing a 1040 as an individual or at 11 20 as a corporation partnerships uh shell out at 10.65 or an s corp uh filing an 1120s um when that u.s person owns stock so equity in a foreign entity and that foreign entity is treated as a disregarded entity for federal tax purposes or it's operating a foreign branch okay so if you find yourself within that kind of fact pattern you'll likely need an 8858 with your u.s tax return so best way to look through this is is with an example um so we have john here he's a us citizen and he's living and working from miami now john decides that he wants to open a foreign corporation in cayman rather than let's say go with a florida corporate entity or or a delaware entity and he's going with the cayman islands entity and he's going to own 100 the stock and the reason he's going down this path is because he feels that the foreign corporate structure is going to prhim more liability protection right um so the entity is beyond the scope or the reach of the us courts um...
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Video instructions and help with filling out and completing Dd 1750
