What the ledger is telling us
Exposure findings, risks and recommendations in one queue, ranked critical first. Every item opens on the facts it was derived from — nothing here is typed by hand.
sphera-wealth-management-advisory
Top-5 customer concentration creates churn-revenue cliff
Form 5471 and 8621 filing complexity with potential IRS challenge on §962 election thresholds
Sofía's 2018 relocation to Miami (FL) made her a US tax resident with worldwide-income exposure and triggered Subpart F + GILTI on her 15% Castro Agro Holding stake (Argentine CFC with active agro income — partial active-trade exception likely). Recommend: (i) Section 962 election to be taxed at corporate rates with FTC; (ii) PFIC analysis of legacy Panama vehicle (high risk — recommend wind-down acceleration); (iii) annual GILTI inclusion modeling with QBAI deduction; (iv) gift-tax-aware path for any future stake reductions to avoid US covered-expatriate §877A risk if she later un-domiciles.
FIRPTA 15% withholding on gross proceeds for any non-resident-held disposition
Failure to elect MTM/QEF triggers punitive excess-distribution regime
UY 6-year territorial carve-out expires 2028; post-2028 worldwide income exposure
If Sofía later un-domiciles US (>8/15 yrs), §877A covered-expatriate exit tax applies
Castro family holds 11.2M USD of FL real estate (Miami condo, Key Biscayne, Sofía's primary) through Castro Real Estate Florida LLC and personal title. FIRPTA exposure on disposition by non-resident family members (Eduardo, Mateo, Valentina); Sofía is US-resident so FIRPTA does not apply to her ownership share. Recommend: (i) restructure non-resident interests into a US C-corporation blocker (Castro Investments USA LLC's existing C-corp election covers this); (ii) for Sofía's primary residence, retain personal ownership to preserve §121 250,000 USD principal-residence exclusion; (iii) Brennan-Mitchell Trust (revocable) should hold investment properties only; (iv) consider §1031 like-kind exchange on Key Biscayne if reinvesting in FL portfolio.
Mateo relocated tax residency to Uruguay in 2022, benefitting from the UY territorial regime (foreign-source income exempt for first 6 years). His 15% Castro Agro Holding stake remains AR-situs and is subject to AR sociedad-conyugal rules with Camila Pérez (UY-domiciled). Argentine forced heirship (fh-ar-descendants) reserves 66.7% for descendants — Mateo's testamentary planning must reserve at least 2/3 for Clara (current single child). UY/AR DTA (treaty-ar-uy) gives dividend WHT 10%; bond interest fully exempt. Recommend: (i) confirm UY territorial regime continues through 2028; (ii) draft AR-law-governed will respecting fh-ar-descendants; (iii) align with UY succession rules (fh-uy-descendants 50%) for UY-situs assets; (iv) post-2028 evaluate IRPF non-resident structuring for foreign-source income.
Sofía's indirect interest (via Castro Agro Holding) in AR-side investment portfolios (fi-castro-ar-bonds, fi-castro-ar-equity) requires PFIC testing on each pooled investment vehicle. Castro Agro Holding itself is an active business (>75% active income) so it escapes PFIC at the top-level. Recommend: (i) annual Form 8621 prep for any underlying AR fund that fails PFIC tests; (ii) consider Mark-to-Market (MTM) election where available for liquid AR positions; (iii) for the legacy Panama vehicle (ls-castro-pa-legacy), confirm PFIC status — likely PFIC given its passive role — and accelerate wind-down already underway.
TechVentures LLC (DE C-corp, SaaS B2B, ~40M USD EV midpoint, 9x EV/EBITDA × 4.4M FY24 EBITDA). Acquirer: Castro Investments USA LLC (existing C-corp blocker). US deal, no DTA complexity. Post-acquisition: TechVentures becomes a wholly-owned subsidiary of Castro Investments USA LLC. CFC analysis for Sofía: shifts an additional 15% indirect interest under Subpart F + GILTI — analyse incremental impact under rec-castro-sofia-residency-cfc.