Tax Issues and Planning to Consider Before Year-End 2020
November 10, 2020Client Alerts November 2020 This annual newsletter briefly highlights certain tax issues and planning that hedge fund managers (and other high-net-worth individuals) should consider (or reconsider) before year-end. Although year-end tax planning is always important, the potential increase in tax rates in 2021 makes it even more important this year-end. The election may be over, but uncertainty…
The Impact on Fund Investors and Fund Managers of the New Regulations on the Business Interest Expense Limitation under Section 163(j)
August 25, 2020Client Alerts The Tax Cuts and Jobs Act (the “TCJA”), enacted on December 22, 2017, made significant changes to Section 163(j) of the Internal Revenue Code of 1986, as amended (the “Code”), regarding the deductibility of business interest expense. For tax years 2018 through 2025, Section 163(j) of the Code generally limits a taxpayer’s business interest expense…
Kleinberg Kaplan Attorneys Recognized in Best Lawyers in America
August 21, 2020Firm News Premier boutique law firm Kleinberg Kaplan has been recognized in the Best Lawyers in America 2021 edition. Several firm attorneys were listed in the Best Lawyers in America and in the inaugural Best Lawyers in America: Ones to Watch categories. Best Lawyers in America 2021 Philip Gross (Tax Law) Jeffrey B. Kolodny (Trusts & Estates) James R.…
Potential Tax Refunds If SCOTUS Rules That Affordable Care Act Is Unconstitutional
July 13, 2020Client Alerts July 15, 2020 Deadline for 2016 Protective Refund Claims for Taxpayers that Did Not Go on Extension For 2016 July 2020 In December 2019, the 5th Circuit Court of Appeals ruled that the individual mandate portion of the Affordable Care Act (the “ACA”) was unconstitutional. The Supreme Court of the United States (the “SCOTUS”) has agreed to…
A Tax Planning “Hat Trick” for Funds Acquiring Portfolio Company Debt
July 9, 2020Client Alerts As a result of the COVID-19 pandemic, many companies are having difficulty meeting payment obligations on their outstanding debt. However, thanks to a combination of the U.S.-Irish income tax treaty and Section 108 of the Internal Revenue Code of 1986, as amended (the “Code”), private equity funds (and other funds) may be able to find…
More Global High-Wealth Audits Expected Soon
June 22, 2020Client Alerts The Commissioner of the IRS Large Business and International Division recently announced that the Global High Wealth Industry Group of the IRS will initiate several hundred audits of high-wealth individuals. The audits are expected to commence beginning July 15 when the suspension of certain examination and collection functions of the IRS is lifted. A representative…
Kleinberg Kaplan represents Mittleman in its completed merger with Aimia
June 22, 2020Firm News Kleinberg Kaplan is pleased to have represented Mittleman Brothers, LLC in its completed merger with Aimia Inc. (AIM). This represents another in a recent string of Canadian public company transactions and activism engagements handled by our firm. Kleinberg Kaplan attorneys advising Mittleman included partners Christopher P. Davis and Eric Wagner and associate Alex Shiekman (Corporate), partner…
Summary of Key Tax Provisions for Individuals and Businesses under the CARES Act
March 30, 2020Client Alerts The Coronavirus Aid, Relief, and Economic Security Act ( the “CARES Act”) was signed into law on Friday, March 27, 2020. The CARES Act contains a number of tax provisions which modify the Internal Revenue Code of 1986, as amended (the “Code”). The provisions are designed to provide relief and assistance to both individuals and…
Mark-to-Market Election – Whether to Make or Revoke a Section 475(f) Election on or Before March 16, 2020
March 2, 2020 Each year, we send an annual newsletter to our clients and friends on Section 475(f) mark-to-market elections. A 475(f) election must be made by partnerships early in the year (by March 16, 2020 for 2020) and can be overlooked while people are focused on preparing tax returns for the prior year. In a year like…
Hedge Funds – Tax Issues and Planning to Consider Before Year-End 2019
December 17, 2019Client Alerts Year-end has always been a time for tax planning and we send our clients and friends our year-end tax planning newsletter on an annual basis. Similar to the end of 2018, there does not appear to be significant tax legislation on the horizon. Also, there are still many unanswered questions regarding the 2017 Tax Cuts…
Certain Fund Managers May Be Required To File TIC Form SHL By August 30, 2019
August 21, 2019Client Alerts, FEATURED PUBLICATION Fund managers may be required to file Treasury International Capital (“TIC”) Form SHL, Report of Foreign-Residents’ Holdings of U.S. Securities, Including Selected Money Market Instruments (SHL (2019)) by August 30, 2019, based on the fair value of certain U.S. securities determined as of June 28, 2019, issued to foreign persons. This newsletter focuses on the…
Kleinberg Kaplan Attorneys Featured in Law360 Article on Largest First-Half Hotel M&A Deals
July 23, 2019Firm News Kleinberg Kaplan attorneys were recently featured in Law360‘s article on the Largest First-Half Hotel M&A Deals. Kleinberg Kaplan’s contribution includes the $420 million venture with GFI Capital Resources Group (“GFI Capital”) and Elliott Management Corporation (“Elliot”) to acquire the Parker Hotel in New York. Kleinberg Kaplan acted as counsel to both GFI Capital and Elliott.…
Proposed Regulations May Substantially Mitigate CFC Tax Issues for Funds – Certain Funds May Want to Issue Amended 2018 K-1s
June 20, 2019Client Alerts, FEATURED PUBLICATION The Internal Revenue Service issued proposed regulations on Friday, June 14th, addressing various aspects of the controlled foreign corporation (“CFC”) rules, including with respect to global intangible low-taxed income (“GILTI”) and, significantly, who is a 10% or more shareholder for inclusion purposes regarding subpart F income and GILTI income. Among other things, the proposed regulations…
Mark-to-Market Election – Whether to Make or Revoke a Section 475(f) Election on or Before March 15, 2019
March 11, 2019Client Alerts, FEATURED PUBLICATION Section 475(f) of the Internal Revenue Code of 1986, as amended, provides that a trader in securities or commodities can make elections to “mark-to-market” their securities and/or commodities and treat increases or decreases in value as ordinary. A fund must be a trader, and not an investor, in order to be able to make a…
Tax Planning for Losses
December 26, 2018Client Alerts, FEATURED PUBLICATION This newsletter is a brief follow-up to our recent year-end tax newsletter. Click here for our year-end newsletter. Since our 2018 year-end newsletter was distributed, the stock market has been very volatile and decreased significantly (although the market was up a lot today, December 26th, fortunately). Many funds may have significant unrealized losses. This newsletter…
Hedge Funds – Tax Issues and Planning to Consider Before Year-End
December 5, 2018Client Alerts Year-end has always been a time for tax planning and we send our clients and friends our year-end tax planning newsletter on an annual basis. Unlike the end of 2017, there does not appear to be significant tax legislation on the horizon, although there still could be some changes enacted in 2019, including some potential…
So You Manage a Fund? Watch Out for the Excess Business Loss Rules!
October 18, 2018Client Alerts, FEATURED PUBLICATION Following tax reform, there is a restriction on the deductibility of business expenses. Under the new “excess business loss” rules, trade or business expenses are not deductible to the extent they exceed trade or business income. (Provided that taxpayers filing joint returns are allowed to deduct up to $500,000 of such excess expenses, and other…
Potential One-Time Opportunity Today For Federally Deductible Charitable Contribution With A Credit Against State And Local Taxes -Check Must Be Mailed Today, August 27th-
August 27, 2018Client Alerts The Internal Revenue Service and Treasury issued proposed regulations on August 23rd which are proposed to be effective beginning tomorrow, August 28th. As such, the proposed regulations offer a potential opportunity, which expires today, August 27th, in which to make contributions to a state charitable fund to potentially receive a charitable deduction for federal tax…
Hedge Fund Managers No Longer Need To Worry About the DOL Advice Fiduciary Rule
July 27, 2018Client Alerts, FEATURED PUBLICATION On June 21, 2018, the United States Court of Appeals for the Fifth Circuit issued a mandate that officially vacated the Department of Labor’s advice fiduciary rule, which generally had gone into effect for investments made on or after June 9, 2017. For discussion of the Fifth Circuit’s March 15th, 2018, decision to vacate the…
New Connecticut Tax on Pass-Through Entities — Impact on Hedge Funds and Hedge Fund Managers
June 12, 2018Client Alerts, FEATURED PUBLICATION On May 31, 2018, Connecticut enacted the “Act Concerning Connecticut’s Response to Federal Tax Reform”. Among other things, the Act imposes a 6.99% tax on certain pass-through entities (which, prior to the Act, were not subject to any Connecticut entity-level income tax). This tax may have significant implications for fund managers and other businesses with…
Cayman AEOI Portal Going Offline June 1; Reporting Deadline Effectively Extended to July 31
May 30, 2018Client Alerts, FEATURED PUBLICATION The Cayman Islands Department for International Tax Cooperation (“DITC”) has announced that the Cayman AEOI Portal (for Common Reporting Standard (“CRS”) and US FATCA reporting) will be taken offline on Friday, June 1, 2018, at 12:00 noon. The statutory deadline for 2017 CRS and US FATCA reports remains May 31, 2018. The DITC intends for…
