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Calling for Clarity On NRAs' Partnership SitusCalling for Clarity On NRAs' Partnership Situs

There are various theories proposed for determining situs of partnership interests for U.S. federal estate tax purposes when those interests are held by a non-resident alien (NRA)1 and the partnership is a domestic (U.S.) partnership or holds U.S.-situs assets or conducts business in the United States.2 When no applicable bilateral estate tax treaty speaks to the issue,3 there's a good deal of uncertainty

Dina Kapur Sanna, Partner

November 1, 2009

16 Min Read
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Dina Kapur Sanna

There are various theories proposed for determining situs of partnership interests for U.S. federal estate tax purposes when those interests are held by a non-resident alien (NRA)1 and the partnership is a domestic (U.S.) partnership or holds U.S.-situs assets or conducts business in the United States.2 When no applicable bilateral estate tax treaty speaks to the issue,3 there's a good deal of uncertainty about situs due to a lack of guidance in the Internal Revenue Code and Treasury regulations. The Internal Revenue Service's position, in an old revenue ruling, is that a partnership interest is a U.S.-situs asset if the partnership is engaged in business in the United States.4 But the ruling is based on scant reasoning a...

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About the Author

Dina Kapur Sanna

Partner, Day Pitney LLP

http://www.daypitney.com/

Dina Kapur Sanna, partner in the Individual Clients Department, practices in the area of U.S. federal tax planning for high net worth individuals with property interests and/or heirs in more than one country.

Dina has considerable experience in the development of wealth management structures for residents and nonresidents of the United States. Such structures accommodate multijurisdictional tax and legal considerations in order to maximize tax efficiency from a global perspective, particularly where future generations are, or may become, residents or domiciliaries of the United States. She has had significant exposure to U.S. federal income and transfer tax issues affecting U.S. residents with non-U.S. assets and income and nonresidents with U.S. assets and income, including income and transfer tax treaty analysis and interpretation; rules applicable to income taxation of complex non-U.S. trusts and their beneficiaries; the antideferral regimes relevant to direct and indirect U.S. shareholders of certain non-U.S. corporations; and preimmigration and expatriation tax planning.

Dina is a frequent speaker at international tax and estate planning seminars around the world, including New York, Miami, Los Angeles, London, Switzerland, and Bermuda. She also has written or co-written several articles on international estate planning topics that appeared in periodicals such as The New York Law Journal, Trusts & Estates magazine, the STEP USA Journal; and Estate Planning magazine.

Dina received her B.A. in Economics, magna cum laude, from Lehigh University in 1993, where she was a member of Omicron Delta Epsilon, the International Economic Honorary Society. She received her J.D., with Honors, from the George Washington University National Law Center in 1996, where she also graduated Order of the Coif. Dina also holds a Master of Law (LL.M.) degree in taxation from New York University School of Law, which she received in January 2000.

Dina was recognized as a leading wealth management attorney by Chambers USA Legal Directory and has been consistently included in Best Lawyers in America since 2007. She is a fellow of the American College of Trusts and Estate Counsel (ACTEC).