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Reminder: Approaching Deadline for Elections to Elect into New York State and New York City Pass-Through Entity Taxes for 2024

This alert is a reminder of the approaching deadlines and action items regarding the New York State Pass-Through Entity Tax (the “NYS PTET”) and the New York City Pass-Through Entity Tax (the “NYC PTET”). Deadline: March 15, 2024 The deadline to elect into the NYS PTET and the NYC PTET for 2024 is March 15,…

Client Alerts | March 6, 2024 | Hedge Funds | High Net Worth Individual Planning | Private Equity Funds

Mark-to-Market Election – Whether to Make or Revoke a Section 475(f) Election on or Before March 15, 2024

Each year, we send a newsletter to our clients and friends regarding Section 475(f) mark-to-market elections. A 475(f) election must be made by partnerships before March 15th of the year in which the election is to be effective and can be overlooked while people are focused on preparing prior year tax returns and K-1 estimates.…

Client Alerts | February 28, 2024 | Hedge Funds | High Net Worth Individual Planning | Private Equity Funds

Examination Day: Third Circuit Orders Appointment of Examiner for FTX

A recent decision by the Third Circuit Court of Appeals has reversed a Delaware bankruptcy court decision and directed the appointment of an examiner over the objection of the debtors and the official committee of unsecured creditors. The decision, In re FTX Trading Ltd., will provide a public accounting of the implosion of FTX, gives…

Client Alerts | January 29, 2024 | Creditors’ Rights and Bankruptcy Litigation | Digital Assets and Cryptocurrency

Limited Partner Exception to Self-Employment Tax – What to Do in Light of the Recent Soroban Case

Background on the Limited Partner Exception  Section 1401 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), imposes self-employment tax on an individual’s self-employment income. Self-employment income is generally defined as the net earnings from self-employment, which is “the gross income derived by an individual from any trade or business carried on by…

Client Alerts | January 10, 2024 | Hedge Funds | High Net Worth Individual Planning | Private Equity Funds

Tax Issues and Planning to Consider Before and After Year-End 2023

This newsletter briefly highlights certain tax issues and planning that fund managers and high-net-worth individuals should consider (or reconsider) before and shortly after the end of 2023. There does not appear to be any proposed tax legislation that is expected to be enacted in the near-term, but that is always subject to change. There have…

Client Alerts | December 21, 2023 | High Net Worth Individual Planning | Hedge Funds | Private Equity Funds

Corporate Transparency Act Imposes Significant New FinCEN Reporting and Disclosure Requirements

On January 1, 2024, the Beneficial Ownership Information (“BOI”) reporting requirements under the federal Corporate Transparency Act (“CTA”) are scheduled to go into effect.  The new rules represent a fundamental shift in the U.S. disclosure regime for privately held companies. The CTA A part of Congress’s historic bipartisan National Defense Authorization Act of 2021, the…

Client Alerts | December 5, 2023 | Estate Planning and Administration | Business Advice and Planning | Acquisitions and Sales | Securities and Corporate Finance

IRS Announces 2024 Inflation Adjustments to Estate, Gift and Generation-Skipping Tax Exemptions

The IRS recently released Revenue Procedure 2023-34, which announced 2024 annual inflation adjustments for various tax provisions. Effective January 1, 2024, the estate and gift tax basic exclusion amount and the generation‑skipping transfer (“GST”) tax exemption are scheduled to increase from $12,920,000 to $13,610,000.  This is an increase of $690,000 per person or $1,380,000 for…

Client Alerts | November 21, 2023 | Estate Planning and Administration

SEC Charges Firms for Violating Whistleblower Protection Rules in Employment Agreements, Separation Agreements and Releases

Firms should review their employment related agreements to determine if any changes are necessary. In September 2023, the SEC issued orders against each of D.E. Shaw & Co., L.P. (“D.E. Shaw”), CBRE, Inc. (“CBRE”) and Monolith Resources LLC (“Monolith”) in connection with provisions in their separation agreements and other employment-related documents that violated Rule 21F-17…

Client Alerts | October 13, 2023 | Executive Compensation | Hedge Funds | Investment Management | Private Equity Funds

SEC Adopts Final Rules Overhauling Beneficial Ownership Reporting

On October 10, 2023, the Securities and Exchange Commission (the “SEC”) announced the adoption of amendments first proposed on February 10, 2022 to Regulation 13D-G and Regulation S-T of the Securities Exchange Act of 1934 (the “Exchange Act”). As described below and as summarized in the chart below, the amendments accelerate the filing deadlines for Schedules…

Client Alerts | October 12, 2023 | Investor Activism | Securities and Corporate Finance