Federal, State, Local & International Taxation Conference by CalCPA and CalCPA Education Foundation

NEW THIS YEAR!

Federal, State, Local & International Taxation Conference November 2-4 Sheraton Universal Hotel Universal City & Webcast

calcpa.org/tax #calCPATAX

Session Details To be a successful tax professional you need the latest information on California and federal tax standards, regulations, court cases and enacted and proposed legislation. This conference will deliver a detailed review of the biggest changes in individual and corporate taxation for 2016-17; practical advice for guiding your clients to minimize tax costs; and best practices to help you prepare for the upcoming tax season. Also, content tracks related to real estate, international taxation, state and local taxes and federal updates will help you customize your learning. This year will also feature choices for those starting out in the tax field through advanced practitioners. Credit Information: LIVE CPE 19 hours CPE Non-Tech 1 hour AA – for Wild and Wacky World 1 hour MCLE 15.5 hours MCLE LS-TX 15.5 hours IRS-TX 14 hours CTEC-TX 14 hours WEB (luncheon speakers not webcasted) CPE 18 hours CPE Non-Tech 1 hour AA – for Wild and Wacky World 1 hour MCLE 14.5 hours MCLE LS-TX 14.5 hours IRS-TX 14 hours CTEC-TX 14 hours

Wednesday, November 2 Welcome 12:30 p.m.

Arthur J. (Kip) Dellinger, Conference Co-Chair, Cooper, Moss, Resnick, Klein & Co., LLP; Philip D. W. Hodgen, Esq., LLM, Conference Co-Chair, HodgenLaw PC

Room A 12:35 p.m. R&D Tax Credits— Overview & Update Kevin Zolriasatain, CPA, KBKG

-- Provide a general overview of the R&D Tax Credit -- Learn about the benefits of the research credit and its value as an annuity for taxpayers engaged in qualifying research -- Learn about the qualifications criteria -- Understand how the R&D Tax Credit can be used in tax planning for this year and beyond -- Understand how the R&D Tax Credit can tie into other tax planning ideas (i.e., Section 199 & IC-DISC) -- What to expect from your R&D Tax Credit consultant

Room B 12:35 p.m. Real Estate Problems & Solutions

Belan K. Wagner, Wagner Kirkman Blaine Klomparens & Youmans LLP -- Tenancy in common (TIC) -- Real estate in a corporation -- How to get rid of a negative basis

Room C 12:35 p.m. K-1 Disclosures for International Tax Items and Issues

Ani Galyan, Millar Law, A Professional Corporation, Sanford I. Millar, MillarLaw, A Professional Corporation -- Overview of Information Returns and forms as related to partners in foreign partnerships -- Outbound transactions -- Are foreign partnership interests reportable on Form 8938? -- Inbound transactions -- How do you obtain a TIN for a foreign partnership? -- What are the withholding requirements for foreign partnerships that invest in U.S. real property?

Room A 1:25 p.m. Circular 230 Update

Arthur J. (Kip) Dellinger, CPA, Cooper, Moss, Resnick, Klein & Co., LLP; Carolyn M. Lee, Morgan, Lewis & Bockius LLP -- Current priorities of the Office of Professional Responsibility -- The state of efforts to regulate return preparers -- The new partnership audit regime -- Advice to provide to clients now, including when to seek legal counsel -- Other trending traps for the unwary tax accountant, crossing the boundary to the unauthorized practice of law

Room B 1:25 p.m. Real Estate and Divorce

David W. Klasing, Esq., M.S.-Tax CPA, Tax Law Office of David W. Klasing, P.C. -- Learn the common roles CPAs play in divorce scenarios involving real estate -- Learn the basics involved with assisting your client’s divorce counsel with negotiating settlement and support agreements -- Learn the major tax implications that are commonly relevant in divorce scenarios -- Learn what portions of a divorce (if any) are deductible by your client -- Learn what ethical traps exist in divorce scenarios for CPAs and how to successfully mitigate them

Room C 1:25 p.m. International Value Added Tax (VAT) for U.S. Businesses Gareth Davis, ACA, Fitzgerald & Law

-- What is VAT and how might your clients be exposed to it earlier than you think? -- How can companies reclaim VAT incurred overseas? -- What are the specific VAT rules around digital services?

Break 2:15 p.m.

Room A 2:30 p.m. Form 1065 and Schedule K1: Common Compliance and Reporting Mistakes and How to Avoid Them Jeffrey M. Curtis, CPA, MST, RINA Accountancy Corporation

-- Overview of the 1065 -- Overview of the partnership agreement and its importance -- Capital accounts: 704(b) vs tax basis vs GAAP -- Reporting section 754 Step -- Special allocations: reporting profit and capital percentages -- Debt allocation: Recourse vs NonRecourse -- 704(c) Built in gain reporting

Room B 2:30 p.m. Partnership Exchanges and IRC Section 1031: Alternatives to a Drop and Swap, Part 1

Panel: Tim Tikalsky, CPA, Stockholder, RINA Accountancy Corporation; Edward I. Kaplan, Greene Radovsky Maloney Share & Hennigh LLP; Mary Cunningham, Chicago Deferred Exchange Company -- IRC Section 1031(a)(2)(d); Magneson, Bolker & Maloney; IRS published rulings: 75-292 & 77-337 -- Drop & Swap/Swap & Drop options and challenges -- Installment note structure -- Special allocation of gain -- What about the questions on the 1065 -- Other potential solutions

Room C 2:30 p.m. A Short Guide to Understanding Foreign Reporting Issues

Dennis N. Brager, Esq., Brager Tax Law Group -- Offshore transactions which must be reported on various U.S. tax forms, including forms 5471, 8865, 3520 and more -- Penalties triggered by the failure to report offshore transactions, including the failure to file FinCEN Form 114 -- An analysis of six-year and unlimited statute of limitations for failing to report certain offshore transactions -- A brief update on the current status of the various offshore disclosure programs

calcpa.org/tax | 800.922.5272

Room A 3:20 p.m. Avoiding Affordable Care Act Anguish—Tax Reminders

Room C 3:20 p.m. Immigration Challenges and Pre-Arrival Tax Planning

-- Key ACA tax updates -- Tips for avoiding ACA penalties and other tax problems -- ACA due diligence considerations

-- Immigration -- Categories of visas -- L-1, H1-B, etc. -- Green card -- Timeline for application and processing -- Re-entry permit process for extended absences -- Challenges by immigration when US absence is substantial or frequent -- Where problems come up -- Coordinating with tax -- Pre-arrival planning – income and estate planning -- Foreign income – issue spotting -- Married filing jointly vs. married filing separately for husband and wife -- Case studies – -- Nonresident Alien vs Resident status -- Green Card issues -- Spouse returning to home country after green card status -- California tax issues and reporting -- Corporate plans for multiple employee relocations -- Litigation risks for tax preparers – engagement letters -- Dealing with IRS – with legal counsel or without -- Kovel engagements under legal counsel

Annette Nellen, CPA, CGMA, Esq., San Jose State University

Room B 3:20 p.m. Partnership Exchanges and IRC Section 1031: Alternatives to a Drop and Swap, Part 2

Panel: Tim Tikalsky, CPA, Stockholder, RINA Accountancy Corporation; Edward I. Kaplan, Greene Radovsky Maloney Share & Hennigh LLP; Mary Cunningham, Chicago Deferred Exchange Company -- IRC Section 1031(a)(2)(d); Magneson, Bolker & Maloney; IRS Published Rulings: 75-292 and 77-337 -- Drop and Swap options and challenges -- Swap and Drop options and challenges -- Installment Note structure -- Special allocation of gain -- What about the questions on the 1065? -- Other potential solutions

Dillon R. Colucci, Esq., Greenberg Traurig LLP New York; Brian Rowbotham, CPA, Rowbotham International San Francisco

Adjourn 4:10 p.m.

Thursday, November 3 Welcome 8:30 a.m.

Arthur J. (Kip) Dellinger, Conference Co-Chair, Cooper Moss Resnick Klein & Co. LLP; Philip D. W. Hodgen, Esq., LLM, Conference Co-Chair, HodgenLaw PC 8:35 a.m.

Rainmaking® Skills that Create Huge Competitive Advantage Gerald Riskin, Edge International

-- Attract more work, clients and referrals -- 14 specific skills that will help accountants and their teams compete far more effectively, irrespective of their present sophistication level -- Skills range from soft skills, like listening, to more assertive skills, like courting prospective clients -- Practical, usable ideas that can be implemented immediately

Room A 9:25 a.m. Dischargeability of Taxes Through Bankruptcy

Joseph A. Broyles, CPA, Esq. The Law Offices of Joseph A. Broyles, Inc.; Raymond H. Aver, Esq. Law Offices of Raymond H. Aver, APC -- Key Bankruptcy Dischargeability Rules for Individuals -- Chapter 7 -- Chapter 13 -- Chapter 11 -- What is a Return for Purposes of Dischargeability of Income Taxes?

Session Details

Room B 9:25 a.m. Property Tax

Richard J. Ayoob, Ajalat, Polley, Ayoob & Matarese, -- Changes of ownership and planning strategies to preserve base year values -- Different scenarios in Prop 60 and Prop 90 -- Downsizing provisions -- Parent-child/parent-grandchild rules -- Avoiding taps for the unwary -- Issues with timing of the reporting -- Indication of the transfer -- Potential penalties -- Documentary transfer tax traps

Break 10:15 a.m. Room A 10:30 a.m. Recent Developments Impacting Domestic Entities Gary R. McBride, CPA, Esq., Summit Accountancy Group, Inc.

-- The perils of zeroing out income with compensation to C corp. shareholders -- Using the new partnership audit rules for 2016 1065s and K-1s -- Basis consistency rules and inheritance of a partnership interest -- New Form 8938 SFFA reporting by domestic entities -- Late-breaking developments

Room B 10:30 a.m. Accounting for Foreign Real Estate Holdings by U.S. Persons Brooke Saulsbury, Kieckhafer Schiffer & Company LLP; Carole J. Trent, CPA, Kieckhafer Schiffer& Company LLP

Room B 11:20 a.m. FIRPTA Withholding and Other Complications on Sale of Real Estate

Brenda C. Jemmott, CPA, Stockholder, RINA Accountancy Corporation -- General explanation of FIRPTA -- Withholding rules -- Withholding exceptions -- Compliance issues by non-U.S. persons -- Amounts subject to withholding -- FDAP income -- Effectively connected income -- Documentation to provide on sale of Real estate -- Reduced/exempt withholding forms -- W-8BEN -- W-8ECI -- 1042 information requirements

Lunch 12:10 p.m. 12:30 p.m.

Lunchtime Speaker: Outbound U.S. Income Tax Considerations—Tips & Tricks (IN-PERSON)

John Apuzzo, CPA, PricewaterhouseCoopers LLP – International Tax Services -- Anti-deferral regimes (CFC & PFIC) -- Branches/foreign partnerships/foreign trusts -- Foreign tax credit -- Income tax treaties -- Transfer pricing

Room A 1:10 p.m. New Partnership Audit Rules

Steven R. Mather, Mather Law Corporation

-- Deprecation—the curse of allowed or allowable -- Exchange rate considerations -- Foreign debt -- Qualified business units

-- How the new rules differ from the TEFRA rules -- Are you in or out? Electing in -- Ramifications of being taxed at the individual level versus entity level -- What you need to do now to prepare for the new rules

Room A 11:20 a.m. The Wild and Wacky World of Fiduciary Accounting & Taxation

Room A 2:00 p.m. Critical Estate & Gift Tax Updates

Jacqueline Patterson, J.D., MBT, CPA, Buchanan & Patterson, LLP

Dennis I. Leonard, Esq., Ramsbacher Prokey & Leonard LLP

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-- Basis consistency & Form 8971 -- Rules of compliance -- Post-filing basis consistency rules and penalties -- Continuing duty to supplement -- Client communication -- Special issues

The impact of taxes, tax rates & brackets Distribution planning for fiduciary entities Fiduciary Accounting Elections California Form 541 issues

-- Proposed Treasury regulations under 2704 -- Potential impacts on valuation and taxation -- 2016 year-end planning -- Potential impacts on future planning and compliance -- Select case law update

Room B 2:00 p.m. Maximizing the Tax Benefits for Construction Allowances & Leasehold Improvements

Gregory A. Novotny, Esq., Greene Radovsky Maloney Share & Hennigh LLP -- Determining ownership of improvements for tax purposes -- Qualified lessee construction allowances under Section 110 -- Cost Recovery: expensing, depreciation, and amortization -- Qualified leasehold improvements and other special provisions -- Cost segregation studies for tenant improvements

Break 2:50 p.m. Room A 3:05 p.m. Understanding Form 8621—A PFIC Workshop

Mary Beth Lougen, EA, USTCP, Expat Tax Tools-Form 8621 Calculator -- Basic overview of IRC section 1291-1298 PFIC regulations -- Line by line completion of Form 8621 for a section 1291 PFIC

Room B 3:05 p.m. Structuring Businesses and Choice of Entity

William C. Staley, Law Office of William C. Staley --------------

The bottom line Types of entities available Is any business entity needed? The initial liability analysis Are there tax benefits of incorporating? Disadvantages of using a corporation Minimizing the risk of a double tax with an S corporation Minimizing the risk of a double tax with a LLC or a registered LLP When an existing business entity starts a new business Choices for California professionals Choices for nonprofit organizations Choosing which state law to use Achieving limited liability

Room A 3:55 p.m. Asset Protection: Demystifying

Jacob Stein, Esq., Aliant, LLP -- Practical aspects of protecting assets -- Community property; business entities, foreign and domestic trusts -- Protecting houses, rental properties, bank accounts, businesses and retirement plans -- Protecting assets of a business

calcpa.org/tax | 800.922.5272

-- Protecting assets from claim of government agencies, plaintiffs and lenders

Room B 3:55 p.m. Driving Miss Daisy: Transfer on Death and Holding Title Issues

Boyd D. Hudson, Esq., Adams, Hawekotte & Hudson

Friday, November 4 Welcome 8:30 a.m.

Arthur J. (Kip) Dellinger, Conference Co-Chair, Cooper, Moss, Resnick, Klein & Co., LLP; Philip D. W. Hodgen, Esq., LLM, Conference Co-Chair, HodgenLaw PC 8:35 a.m.

Offshore Yourself: The Business of Buying and Selling Citizenship Atossa Araxia Abrahamian

-- Overview of different citizenship-byinvestment programs -- The effects of FATCA on the passport market -- Discussion of expatriation and the exit tax

Room A 9:25 a.m. California Update

Kelly Bluth, Moss Adams LLP -- Current developments and legislation

Room B 9:25 a.m. Aligning Income Tax and Investment Goals for Clients with International Structures Adam Clark, Goldman, Sachs & Co.

-- U.S. beneficiaries of foreign nongrantor trusts -- Considerations for investible assets in controlled foreign corporations -- Investment considerations in preimmigration planning -- Planning for U.S. taxpayers with non-U.S. family members -- Aligning income tax planning with financial institutions -- Withholding considerations

Break 10:15 a.m.

Room A 10:30 a.m. Make Retirement Plans Great Again

Mark W. Clark, QPA, APA Benefit Associates, Inc.; Meredith J. Sesser, Esq., Brucker & Morra APC ------

New plan limitations Plan design Required minimum distributions Fiduciary Liability New IRS Determination letter program

Room B 10:30 a.m. The Portfolio Interest Exception: All Secrets Revealed

Philip D. W. Hodgen, Esq., LLM, HodgenLaw PC -- How to make interest income tax-free to the lender -- How to make related party portfolio interest loans -- Reporting and withholding rules -- Sample documents

Room A 11:20 a.m. Real Estate Exit Strategies G. Scott Haislet, CPA, Esq., Mission Exchange Inc.

-- 1031 exchange “treadmill”—hold till you die -- Your child’s principal residence as 1031 replacement property -- “Fun” real estate as 1031 replacement property -- Principal residence gain exceeding $500k -- “Drop then swap”—drop now, swap (much) later

-- New California law – revocable transfer on death [TOD] deed – introduction -- Requirements for TOD deeds -- Pros and cons of using TOD deeds -- Alternatives to TOD deeds for the transfer of real property -- Effective dates

Adjourn 4:45 p.m.

Room B 11:20 a.m. Dealing With International Clients: When It Goes From Civil To Criminal Victor S.O. Song, Victor Song Consulting

-- Tips on what to look out for when dealing with international clients -- Dealing with cultural differences and getting to the truth on transactions -- Solving the issues and recommending the best course of action (e.g., amended returns, streamline, contacting a criminal tax attorney) -- How Willfulness, Knowledge, and Overt Acts can affect how you deal with your clients -- What is IRS Criminal Investigations looking for in your client

Lunch 12:10 p.m. 12:30 p.m.

Lunchtime Speaker: Cross Border Tax: Canada/U.S. (IN-PERSON)

Robert F. Keats, CFP, (U.S. and Canada), MSFP, RFP (Canada), KeatsConnelly -- Tax arbitrage—driving a truck load of tax saving across the Canada/U.S. Border -- Treaty planning opportunities -- Cross-border stock option, pension and divorce planning

Room A 1:10 p.m. Tax Controversy

Edward M. Robbins, Hochman, Salkin, Rettig, Toscher & Perez P.C.; Martin A. Schainbaum, Martin A. Schainbaum, A Professional Law Corporation -- Discuss Kovel accountant parameters and assistance -- Use of accountants in an eggshell audit -- Assistance in a criminal investigation -- Trial -- Plea -- Negotiation, computation of tax loss -- Sentencing

Session Details

Room B 1:10 p.m. U.S. Taxation of Foreign Retirement and Pension Plans

Devan Friday, Spott, Lucey, & Wall, Inc. CPAS -

Tax benefit of U.S. and foreign retirement plans U.S. classification of foreign pension and retirement plans U.S. tax treatment of foreign employees’ trust U.S. tax treatment of foreign retirement plans with no employer—employee relationship Ownership of foreign trusts - disclosure requirement Passive foreign investment company implication Impact of U.S. model treaty and analysis of actual treaties in force

Room A 2 p.m. Avoiding the NIIT (Net Investment Income Tax) with Rental Real Estate

Room B 2:00 p.m. FATCA and the Common Reporting Standard

Rental real estate trade or business vs. investment activity Relief for real estate professionals Rental/nonrental grouping Self-rental grouping Self-rental recharacterization relief Short-term rental real estate The real estate developer rule Special challenges with land rentals

General overview and application of FATCA and OECD’s Common Reporting Standard (CRS) Disclosure: W-8 and self-certification forms Implications to: - U.S. persons investing offshore - Foreign investments in the U.S. Entity classification Due diligence obligations of non-U.S. entities classified as financial institutions

Break 2:50 p.m. Room A 3:05 p.m. Interest Tracing Rules Revisited

Jamshed B. Gandi, CPA, CFP, CVA, Principal, RINA Accountancy Corporation -

Interest tracing rules - Applying the general interest tracing rules to partnership level interest of commingled funds - Ordering Rules on Debt Payoffs - Notice 89-35–Interest Expense attributable to Partnership Investments - Notice 89-35–Exceptions to Interest Tracing Rules Debt Financed Distributions–Partnerships - Allocation of debt to partnership level expenditures

SPECIAL THANKS TO OUR SPONSORS PLATINUM

Guilherme Reis, JD, LLM, Citco (Canada) Inc.

Gary R. McBride, CPA, Esq., Summit Accountancy Group, Inc. -

Reporting on Schedule K1 Interest deduction on debt-financed distributions Calculations related to debt-financed distributions

Room B 3:05 p.m. From PFIC to CFC: The Evolution of Shareholder Filing Requirements on Form 8621 and 5471 Debra Rudd, CPA, HodgenLaw PC -

Understanding PFICs and Form 8621 filing requirements Understanding CFCs and Form 5471 filing requirements A detailed walkthrough of what happens on Form 8621 and Form 5471 as the U.S. ownership of a foreign company changes from year to year

Room A 3:55 p.m. Franchise Tax Board Issues

Cameron L. Hess, Esq., CPA, Wagner Kirkman Blaine Klomparens & Youmans LLP; Marty Dakessian, Dakessian Law, Ltd. -

California’s complex and unique tax system Personal and corporate income taxes issues - Residency/sourcing - Apportionment - Credits and incentives Navigating an FTB controversy

Room B 3:55 p.m. Foreign Currency Issues for the Practitioner Rufus V. Rhoades, Esq., Law Offices of Rufus v. Rhoades -

SILVER

What is “currency”? Classifying non-U.S. currencies - Money - Spot rate The investor - Debt instruments in non-U.S. currency - Calculating gain or loss - Capital or ordinary? - Source? Business considerations - Qualified Business Unit (“QBU”) - Functional currency - Operating through a branch - Operating through a foreign subsidiary - Partnership issues Hyperinﬂationary currencies

Adjourn 4:45 p.m.

Registration Information Nov. 2, 12:30 p.m.–4:10 p.m. Nov. 3–4, 8:30 a.m.–4:45 p.m.

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Materials for this conference are provided in PDF format. Three business days before the conference, they will be accessible via calcpa.org/myevents.

Register by phone 800-922-5272 Attend in-person 5163236A Sheraton Universal Hotel 333 Universal Hollywood Dr Universal City, CA 91608-1001 Attend online via webcast 5163236B Cost: $810 Member | $1060 Nonmember Level of difficulty: Update Field of interest: Business Law Prerequisites: Working knowledge of taxation for individuals or businesses. Designed for: CPAs, attorneys and other tax practitioners in public accounting and business. Objectives: • Identify the latest federal and California tax developments and regulations affecting individuals, corporations, estates and trusts. • Determine areas of tax savings for your business or clients. Want to pay using a CPE discount program? CalCPA Education Foundation member discount programs offer great value and can be used for conferences, courses, staff training and CPE Weeks, now including exclusive Luxury CPE destinations. calcpa.org/discounts Contact CalCPA Education Foundation P.O. Box 45066 San Francisco, CA 94145-0066 (800) 922-5272 calcpa.org

Registration Policy All registrations are taken on a first-comefirst-served basis. The CalCPA Education Foundation reserves the right to refuse admission to any individual whose behavior it deems inappropriate. Cancellation Policy If you need to cancel your registration, you must cancel four business days prior to the event to receive a full refund. After that time a refund will be given less a $125 cancellation fee. No refunds will be given for no-shows. VPE no-shows will have the number of registered CPE hours deducted from their VPE credit. Coupon no-shows will forfeit the coupon used to register. For registration policies please go to calcpa.org/policies. Note: Topics and speakers are subject to change. For up-to-date information, please go to calcpa.org/tax. CalCPA Education Foundation is registered with the National Association of State Boards of Accountancy (NASBA), as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN 37219-2417 or learningmarket.org.

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November 2-4 Sheraton Universal Hotel Universal City & Webcast

Federal, State, Local & International Taxation Conference

Non-Profit Org. U.S. Postage PAID CalCPA Education Foundation