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!

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 »

FATCA, Sure! But Cheaters will be Cheaters

By
0
September 11, 2014
FATCA, Sure! But Cheaters will be Cheaters

I have expressed my views about FATCA before. My belief is that while it is a well-intentioned law standing on a higher moral ground, its added complexity and international fallout overshadow its utility. In other words, I personally think that its benefits outweigh the burdens. There was a very thoughtful letter not long ago...
Read More »

ILM 201436049: An Unknown Hedge Fund Gets a Self-Employment Tax Slap from the IRS

By
0
September 8, 2014
ILM 201436049: An Unknown Hedge Fund Gets a Self-Employment Tax Slap from the IRS

Apparently some investment funds continue to take the position that their 2% service fee income is exempt from the self-employment tax (“SET”) under the “limited partner” exception of Sec. 1402(a)(13). These positions are often based on advice by counsel that there is a material distinction among an LLC, LP and LLP when it comes...
Read More »


Miscellaneous