Is Your Hedge Fund A Trader Or Investor? It Matters
February 4, 2014, 1:41 PM EST
Law360, New York (February 4, 2014, 1:41 PM EST) -- Hedge fund managers should be aware of two recent U.S. Tax Court memorandum decisions that shed further light on when a taxpayer, such as a hedge fund, is considered to be a "trader" or "investor" for tax purposes — a designation that may affect the deductibility of fund expenses.
While these cases are more in a long line of decisions involving individuals who trade for their own account, they highlight the factors that courts focus on when making the trader versus investor determination. In Endicott v....
Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.