The Taxation of "Exotic" Investment Products Sold to Individuals

Description

Investing has gone beyond simply stocks, bonds and mutual funds. Today, high-net worth individuals are being offered a dizzying array of “alternative” asset classes and investments (commodities, foreign currency, gold, structured notes, exchange-traded notes, emerging market debt, leveraged ETFs, foreign sovereign debt, hedge funds, etc.). These investments often utilize complex financial instruments and derivatives (futures, forwards, swaps, and options, etc.), the taxation of which often catch the taxpayer and the tax professionals unaware.

This session will discuss:
How these investments are structuredThe financial instruments utilizedThe taxation of these “exotic” investments from the standpoint of the individual investorForeign currency investmentsThe new and proposed source and withholding rules on derivatives and “dividend equivalents”Traps for the unwary and where the Code is unclear as to the proper treatment

Speaker(s):

• Paul S. Lee, J.D., LL.M. (Taxation), Global Fiduciary Strategist, Northern Trust Company