Welcome to Private Equity, Venture Capital and Hedge Fund Taxation

You can change this text in the options panel in the admin

The place to share your thoughts about fund taxation!

Member Login
Lost your password?
Not a member yet? Sign Up!

Fund Principals – Here is What not to Do in Your Private Foundations

By
0
November 24, 2014
dreamstime_17264607

It is common for high profile private equity or hedge fund principals to run private foundations or other charitable organizations. The principals would be “disqualified persons” but the foundations would nonetheless have some room for investing in the underlying investment funds sponsored by the principals without triggering UBTI and excise taxes. The charitable organization sponsored by...
Read More »

In Brinkley v. Comm’r, T.C. Memo. 2014-227, all Goes Wrong for the Taxpayer

By
0
November 3, 2014
600px-US-TaxCourt-Shield-BW_svg

Here is a case that showcases how a routine business transaction could lead to tax grief for the parties involved. In this case we have a founder, CIO exec, who worked for a company called Zavers. The CIO was paid a salary, a bonus, and also received restricted shares, much like many founders and...
Read More »

CCA 201442053 – Partnership Freeze Gone Awry

By
0
October 23, 2014
CCA 201442053 – Partnership Freeze Gone Awry

The IRS released a few days ago the above-mentioned CCA, which illustrates the gory pitfalls of Sec. 2701. In this ruling, the IRS had to opine whether the recapitalization of a family partnership would be subject to Sec. 2701. The parties here attempted a partnership freeze. This is an estate planning technique whereby the...
Read More »

Here Comes FATCA “Phishing”

By
0
September 25, 2014
Here Comes FATCA “Phishing”

It did not take long for sophisticated scam artists to start exploiting FATCA. A few weeks ago we reported the first indictment that we know of whereby several individuals allegedly were selling to overly-entrepreneurial U.S. individuals a runaround FATCA scheme.  Yesterday the IRS came out with a Phishing alert warning FFIs that there are...
Read More »

In Topsnik v. Commissioner the Tax Court Rejects Fiscal Avoidance Attempt in the Sale of Shares

By
0
September 24, 2014
In Topsnik v. Commissioner the Tax Court Rejects Fiscal Avoidance Attempt in the Sale of Shares

Here is a case that came out yesterday where the taxpayer tried to have its cake and eat it too. While the case does not address expressly an investment fund or its LPs one can draw parallels to the fund industry. What was the issue? Many treaties have various mechanisms that are in a...
Read More »


Miscellaneous