Publications

FIRPTA -- A Tax Trap for the Unwary Activist Fund Manager

Summer 2007
Dan A. Kusnetz
Activist Investing Developments - Summer 2007

It is common knowledge that foreign investors who invest in U.S. publicly traded equities are exempt from tax on their capital gains. This is because the United States, like most industrialized nations, does not generally extend its taxing power to capital gains realized by foreign investors, in order to encourage investment in domestic markets. This article provides an overview of this area so that fund managers will not be caught unaware.