A memorandum to be delivered to a foreign parent company's chief financial officer or tax director at the initial stage for structuring a loan to a US subsidiary. This memorandum provides an overview of the relevant criteria for determining whether an intercompany loan is debt or equity for US federal income tax purposes. It also discusses the US statutory rules that can limit interest deductions on intercompany loans and the relevant US transfer pricing rules that impact determinations of the appropriate interest rate for an intercompany loan.