Equity Position: The Right And The Wrong Approach Do you ever see people do things that just make you shake your head? This week, I read about a financial services company that engaged in an equity trading program that functioned like a long / short strategy but was also designed to capture tax benefits from…
A FUNNY THING HAPPENED ON THE WAY TO MODERN TAX RATES Most modern tax practitioners equate corporations with double taxation and seek to avoid using the corporate form of business entity (save for Subchapter S corporations). However, for those practitioners who have been around awhile, the calculus involved in choosing the corporate form might not…
It’s in the local newspapers every week – an employee finally gets caught committing white collar fraud at his or her workplace. Worse yet, the employee is found out years after the fraud began, and typically is a trusted team member with no prior criminal record to give an inkling that this could be possible….
BROKERCHECK AND SOCIAL MEDIA: A NOT-SO SEAMLESS RELATIONSHIP ON THE WEB Before I switch gears from tax to regulatory, I want to thank Tony Tuths for his informative blog last week. In response, I want to comment my objection towards the additional 3.8% tax on net investment income, sometimes referred to as passive income or…
As I cover the alternative investment universe, it seems that in order to enter the hedge fund elite these days one must have one’s own reinsurance company. John Paulson, David Einhorn, Louis Bacon, Steve Cohen, etc… they all have one. This trend started in the late ’90s but has accelerated in recent years and is…
The Medicare and NII Tax: How are your funds affected? If you manage a fund and you live in New York City (or other high tax locale), your combined effective tax rate is currently toping 50%. There have been substantial changes in the past few years that have worked against you via your tax rate….
Are You Aware Of Public Inspection Requirements? Under Internal Revenue Code (“IRC”) §6104, any tax-exempt organization that files a Federal Form 990, Return of Organization Exempt from Income Tax, is required to make available for public inspection its three most recently filed Forms 990 and its application for tax-exemption; either Form 1023 or Form 1024….
RESCISSION – LOSE YOUR SHIRT AND GET A REFUND PLUS INTEREST Reading in the Wall Street Journal, yesterday, I came across an article that troubled me. The article discussed a recent speech given by David Blass, chief counsel of the division of trading and markets of the Securities and Exchange Commission, to a group of…
How to Raise Seed Capital At a recent Bloomberg event entitled, “Hedge Fund Start-Up Conference”, a panelist quipped that the best way to give a new fund some momentum was to get a deep pocketed investor to seed the fund with a large chunk of cash. Thanks for the tip! Accurate advice; However, it’s easier…