A sovereign wealth fund (SWF) is a broad investment vehicle established and controlled by a sovereign state. Such funds invest in equity and debt arrangements, including acquisitions in U.S.-based firms. Christopher Karachale, in his article on sovereign seizures for M & A Tax Report, discusses when losses incurred through these investment vehicles may be considered an involuntary conversion for purposes of claiming ordinary loss.
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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.
Read this article from CCH’s Journal of Taxation of Financial Products