Levridge’s Post

This week's accounting insights focus on why it is important to revalue your company's assets and liabilities in forex accounts to reflect the current exchange rates. Dhurvi Patel shares more. #PKFInsights #Accounting #ForexAccounting https://lnkd.in/d4daXyqv

HDMCO TaxReg FAQs [382/2024-25] Q. In which year Capital gain is chargeable to tax in case of transfer of beneficial interest in securities? Ans. Where any person had beneficial interest in any securities at any time during the year, then any profit or gain from such transfer shall be chargeable to tax as income of the beneficial owner in the year of transfer and shall not be regarded as income of the depository who is deemed to be the registered owner. - Beneficial owner means A person whose name is recorded with depository. - Where securities are acquired in several lots at different points of time, FIFO method shall be adopted to calculate period of holding. Following Procedure to be followed when securities are transacted through stock exchange- - Firstly, the brokers enters into the contracts for purchase/sale of securities. - Delivery of shares along with transfer deed duly signed by the registered holders. - The seller is entitled to receive the consideration agreed on the date of the contract. - In case sale of securities are followed by delivery of shares & transfer deed, then transfer date will be date of broker’s note.

In a recent Private Letter Ruling (PLR 202440005 - ), the IRS delves into the complexities of hedging for FX transactions under Section 988(d) and Reg. 1.988-5's integrated transaction rules. This PLR stands out because the IRS, through a private ruling, permitted the taxpayer to cure a "busted" hedge retroactively. Most PLRs related to integration rules have been forward-looking, making this case unique. The taxpayer had identified the hedge as integrated, but then sought a PLR when it realized that it had failed to meet all of the hedging requirements. Moreover, the PLR segmented the gain or loss on the hedge into two parts. The portion that aligned with the underlying economic exposure to purchase the foreign target's stock was integrated, while the excess, labeled the "Excess Hedge," was treated as a separate Section 988 transaction. The PLR effectively restructured a single contract into two distinct components. Lastly, the PLR outlines key prerequisites for a valid tax hedge to be integrated under 1.988-5. The hedge failed as it was entered into before there was executory contract and expired before the accrual date without a valid replacement transaction. This showcases the meticulous nature of integrated treatment requirements and the potential for a PLR under Section 988(d) to address deficiencies. #IRS #TaxLaw #Hedging #FXTransactions #PLR #Section988 #IntegratedTransactionRules

Korea approves revision to Financial Investment Services and Capital Markets Act (FSCMA). This revision aims to enhance short selling rule as SK FSC is scheduled to lift the ban on short selling by the end of March 2025. The revised rule requires institutional investors to set up their own electronic short sale processing system, and both institutional and corporate investors will need to prepare relevant internal control standards to prevent short selling. There will also be a new restriction on the stock repayment period for borrowed stocks to cover short selling. Impacted financial institutions and corporates need to prepare and demonstrate their compliance, as the bill aims to enhance the monetary penalties for illegal short sale activities, as well as those who have failed to establish internal control standards to prevent short selling, even when there is no occurrence of short selling activities. https://lnkd.in/gtt9deWQ

You are only 90 days away from being fined by the treasury department! Learn how the FinCEN BOI reporting mandate affects your company and what steps you need to take. Miss the deadlines, and you could face hefty fines or legal consequences. Read our latest article to stay compliant! https://birdeye.cx/lguuc3

Aprio's Carl Budenski has an important and timely message about new Transfer Pricing regulations that have just dropped from the Treasury. Here's a quick update and for more detailed account visit https://lnkd.in/eeZzBU2d to learn more.

It's the time of year where we see a lot of visitors to our website looking for information on the Cumulative Translation Adjustment (CTA). The CTA is a financial reporting adjustment necessary for multi-entity companies operating with multiple currencies. It reflects gains or losses from foreign exchange rate fluctuations on consolidated financial statements, ensuring these are presented separately. This enables accurate decision-making and compliance with accounting standards. If you're closing the books right now and have questions about the CTA, please let me know! It's tricky to book the CTA if your general ledger doesn't do it for you, but it's critical to include this to ensure your consolidated financials are accurate. #globaltrade #currency #accountants

When performing a Section 1031 like-kind exchange, exchangers must choose a Qualified Intermediary to hold funds during the exchange. Whether you’re performing a forward or reverse exchange, you will need a QI, and should select one that follows industry best practices. To help exchangers understand what to look for in a QI, JTC has created a factsheet that outlines current best practices in areas like security of funds, transactional transparency, and regulatory compliance. This is a great resource for anyone who wants to make sure they find the right service providers to ensure a successful exchange. Download our factsheet here: https://lnkd.in/eACDqYCd #1031Exchange #RealEstate #Property #Taxes #Investing #CommercialRealEstate #FinancialServices

Steer Clear of Costly Errors: Learn the Common Mistakes to Avoid While Filing Your GST Returns! . . . . . #MutualFunds #InvestingBasics #PrivateEquityJourney #FinancialServices #PersonalFinance #MoneyManagement #FinancialPlanning #FinancialEducation #FinancialFreedom #FinancialSuccess #MoneyTips #FinanceAdvice #investment #trading #stockmarket #trending #fyp #stockmarket #tradingstrategy #reelsinstagram #divadhvik #Custodian #InvestmentGuardian #InternationalFunds #Liquidity #SmartInvesting #MutualFunds #DRIP #InvestmentStrategy

A registered bond has the owner’s name and contact information recorded with the issuing entity. This ensures that coupon payments are correctly distributed to the registered owner. In contrast, bearer bonds lack registered ownership information. Whoever holds the physical bond at the time can redeem it, making bearer bonds more like cash. While registered bonds provide security and systematic transfer processes, bearer bonds offer anonymity but come with increased risks and limited replaceability. Bearer bonds have not been issued in the United States since 1982. Bearer bonds were discontinued in the United States due to their potential for fraud and abuse. These anonymous investments allowed anyone holding a certificate to cash them in, making them vulnerable to misuse. In 1982, the Tax Equity and Fiscal Responsibility Act effectively eliminated bearer bonds by removing the tax deduction for interest paid by the issuer. Tax implications for bondholders depend on the type of bond and the investor’s tax situation. In the US, bondholders receive periodic interest payments, coupon payments. Interest income is generally taxable at the federal, state, and local levels. Tax rates vary based on the bondholder’s tax bracket and location. Countries such as Singapore do not tax coupons. Some bonds, like municipal bonds, offer tax-exempt interest income. Interest from these bonds is typically free from federal income tax. State and local tax treatment varies; some states exempt interest from in-state municipal bonds.  If a bondholder sells a bond before maturity, any capital gain or loss is subject to capital gains tax. Singapore has no such tax. Capital gains tax rates depend on the holding period. Terence Nunis Terence K. J. Nunis, Consultant Chief Executive Officer, Equinox GEMTZ