Thu, Apr 26, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other voices: Proposed tax reform legislation: what managers, investors and advisors are discussing

Friday, December 15, 2017

By: Gerard O'Beirne, Eisner Amper

As of the date of this article, both the House and Senate have voted on and approved separate versions of tax reform legislation. The process of reconciliation is now underway. Although tax planning decisions, both long term and short term, cannot be finalized until a bill is signed into law, many fund managers, their investors and their advisors are discussing various aspects of the proposals and the effect on the financial services industry. This article addresses some of the issues being addressed in the financial services fund world. It is meant to be a springboard for discussion between the fund managers and their advisors and not meant to be advisory.

1. Converting management companies currently organized as partnerships, limited liability companies and S corporations to a C corporation

One of the major components of both the House and Senate bills is the reduction of the corporate income tax rates to a flat 20% (possibly 22%). In the House bill, this would take effect after 2017 and in the Senate bill after 2018. The House bill provides that personal service corporations ("PSCs") would be subject to a flat 25% rate for the first two years and 20% thereafter. The Senate bill would eliminate the special tax rate of a PSC. A PSC is a corporate entity formed by individuals who provide personal services for their clients. Examples of this type of business include doctors' offices, law firms and accounting fi......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its