What Every Tax Adviser Needs to Know About Hedge Funds

Individuals, corporations, and non-profits are increasingly investing in hedge funds and need to understand the tax and other risks such investments may carry, especially in light of the dramatic downturn in the capital markets in 2008. They are looking to tax practitioners (including estate planners) for advice in this emerging area. This presentation discusses how hedge funds are structured, the myriad of income, partnership, international, estate & gift tax considerations, the interplay of the constructive sale & straddle rules and the taxation of financial derivatives, along with the specific investment risks that are inherent in hedge funds.