Monday, 22 December 2014
Last updated 38 min ago
Apr 2 2013 | 10:29am ET
As the alternative investment industry girds for another fight over taxation of carried interest, a little-known new tax has already begun to eat into those profits.
President Barack Obama's 2010 healthcare overhaul included a new levy, the net investment income tax, which will take 3.8% of "unearned investment income" from the highest-earning taxpayers. And, according to a new white paper from law firm Hirschler Fleischer, the new tax is targeted specifically at hedge fund managers and gives them little opportunity to avoid it.
The NII, which took effect at the beginning of the year, taxes income from "trading in financial instruments."
Private equity fund managers, according to Hirschler Fleischer, may be able to avoid the levy, but only if they can demonstrate that their investments aren't passive. That could be hard: Federal tax law requires some 500 hours of work annually personally performing services for a business to shed the passive tag.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.