ECI Risk Threshold Screener

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Effectively Connected Income (ECI) forces foreign investors to file U.S. tax returns and pay taxes at graduated rates. Use this screener to gauge whether a planned activity crosses the threshold into a "U.S. Trade or Business."

1. Are you investing in U.S. stocks or bonds strictly as a passive portfolio investor?

2. Are you acquiring U.S. real estate that will generate rental income?

3. Are you investing as a Limited Partner (LP) in a U.S. private equity or venture capital fund that operates operating businesses?

Legal Disclaimer

This is a simplified screener. ECI determination is highly fact-intensive. A foreign person who is a partner in a partnership that is engaged in a U.S. trade or business is themselves considered to be engaged in that trade or business. Always interpose a Blocker Corporation if ECI risk is present.