{"product_id":"taxation-of-u-s-investment-partnerships-and-hedge-funds-9780470605752","title":"Taxation of U.S. Investment Partnerships and","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003e\u003cb\u003eA new, lucid approach to the formulation of accounting policies for tax reporting\u003c\/b\u003e  \u003cp\u003eUnraveling the layers of complexity surrounding the formulation of accounting policies for tax reporting, \u003ci\u003eTaxation of US Investment Partnerships and Hedge Funds: Accounting Policies, Tax Allocations and Performance Presentation\u003c\/i\u003e enables your corporation to implement sound up-front accounting and tax policies in order to reduce the overall cost of CFO and legal functions within a U.S. Investment partnership.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eUnderstand the pitfalls and optimize across legitimate policies that are consistent with the IRS regulations\u003c\/li\u003e \u003cli\u003ePresents a clear roadmap for accounting, tax policies, tax filing and performance presentation for US investment partnerships and hedge funds\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eProviding tremendous understanding to a complex topic, \u003ci\u003eTaxation of US Investment Partnerships and Hedge Funds\u003c\/i\u003e is guaranteed to demystify the inner workings of the formulation of accounting policie\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003e\u003c\/p\u003e\u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 \u003c\/b\u003e\u003cb\u003eThe Arcane World of Hedge Funds and Investment Partnerships 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is a “Hedge Fund”? 1\u003c\/p\u003e \u003cp\u003eU.S. Venture Partnerships 3\u003c\/p\u003e \u003cp\u003eTypes of U.S. Hedge Fund Entities and the U.S. Tax Code 4\u003c\/p\u003e \u003cp\u003eOrganizing a Typical U.S. Hedge Fund 6\u003c\/p\u003e \u003cp\u003eInvestor Clienteles in Hedge Funds 10\u003c\/p\u003e \u003cp\u003eForeign Investors in a U.S. Hedge Fund 14\u003c\/p\u003e \u003cp\u003eOffshore Funds 14\u003c\/p\u003e \u003cp\u003eU.S. Investors in Offshore Funds 17\u003c\/p\u003e \u003cp\u003eU.S. Investors in Swiss Bank Accounts 19\u003c\/p\u003e \u003cp\u003eU.S. Investors in Madoff-Like Managed U.S. Trading Accounts 23\u003c\/p\u003e \u003cp\u003eSize of the Global Hedge Fund Industry 25\u003c\/p\u003e \u003cp\u003eFund-of-Funds 28\u003c\/p\u003e \u003cp\u003eIncentives of the Hedge Fund Manager and Investors 30\u003c\/p\u003e \u003cp\u003eValuation of a Hedge Fund Management Company 31\u003c\/p\u003e \u003cp\u003eEconomies of Scale in Hedge Funds 33\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 \u003c\/b\u003e\u003cb\u003eThe Structure of Hedge Funds 35\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOrganizing a Typical Offshore Hedge Fund 35\u003c\/p\u003e \u003cp\u003eMaster-Feeder Structuring of Onshore\/Offshore Arms: Organizing a Hedge Fund for Clienteles 39\u003c\/p\u003e \u003cp\u003eU.S. Withholding Agent for U.S. Withholding Taxes on Foreign Investors 44\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 \u003c\/b\u003e\u003cb\u003eHedge Fund Fees 47\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStarting Point: The Partnership Agreement 47\u003c\/p\u003e \u003cp\u003eFund Valuation at Discrete Opening Time Points 48\u003c\/p\u003e \u003cp\u003eCalculation of Fixed Fees 49\u003c\/p\u003e \u003cp\u003eCalculation of Performance Fees 55\u003c\/p\u003e \u003cp\u003eClaw-Back Provision: Performance Fee Returned to Limited Partners 66\u003c\/p\u003e \u003cp\u003eRepresentation of a Fund’s Net Asset Value (NAV) per Share 71\u003c\/p\u003e \u003cp\u003eBlack-Scholes Formula Valuation of Performance Fees 74\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 \u003c\/b\u003e\u003cb\u003eHedge Fund Accounting and Tax Filing 79\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePartnership Accounting for U.S. Funds 79\u003c\/p\u003e \u003cp\u003eIRS Tax Return Filings for U.S. Hedge Funds 80\u003c\/p\u003e \u003cp\u003eFinancial Statements for Hedge Funds and Venture Funds 85\u003c\/p\u003e \u003cp\u003eInterim Valuation: The Core of a Hedge Fund’s Accounting Operation 93\u003c\/p\u003e \u003cp\u003eBooks of Account and Financial Statements for Hedge Funds 96\u003c\/p\u003e \u003cp\u003eAudit of an Offshore Fund 97\u003c\/p\u003e \u003cp\u003eAudit of a U.S. Fund 98\u003c\/p\u003e \u003cp\u003eCapital Account Audit for Both Offshore and U.S. Funds 99\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 \u003c\/b\u003e\u003cb\u003ePartner Tax Allocations in U.S. Partnerships 101\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eU.S. Tax Allocation Rules Governing U.S. Partnerships 101\u003c\/p\u003e \u003cp\u003eTax Components of U.S. Investment Partnership Income 103\u003c\/p\u003e \u003cp\u003eFixed Fees: Income to the General Partner and Expense to the Limited Partners 107\u003c\/p\u003e \u003cp\u003eGeneralizing the Allocation Formula to Other Components of Income 108\u003c\/p\u003e \u003cp\u003eTax Basis of Partner’s Investment in a U.S. Partnership 109\u003c\/p\u003e \u003cp\u003eAccountants’ Terminology 113\u003c\/p\u003e \u003cp\u003eTax Allocations of Realized and Unrealized Income to Partners 113\u003c\/p\u003e \u003cp\u003eThe Tax Allocation Method of Layering 115\u003c\/p\u003e \u003cp\u003eTax Allocation of Interest 118\u003c\/p\u003e \u003cp\u003eTax-Exempt Interest Income, Line 18a 120\u003c\/p\u003e \u003cp\u003eSimilar Calculation for Tax Allocation of Dividends, Investment Expense, Foreign Tax Paid 121\u003c\/p\u003e \u003cp\u003eTax Allocation of Fixed Fees Paid by Limited Partners 121\u003c\/p\u003e \u003cp\u003eTax Allocation of Guaranteed Payments (of Fixed Fees) to the General Partner 122\u003c\/p\u003e \u003cp\u003eReporting Subcomponents of Interest Income and Dividends 122\u003c\/p\u003e \u003cp\u003eTax Consequences of Shorting 123\u003c\/p\u003e \u003cp\u003eShort Positions: Tax Treatment of Equity Dividends or Bond Coupons Claimed as Interest Expense 123\u003c\/p\u003e \u003cp\u003eDistributions from Partnerships Owned 124\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 \u003c\/b\u003e\u003cb\u003eTax Allocations of Realized Gains by Layering 127\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTax Allocation of Unrealized and Realized Capital Gains Using the Method of Layering 127\u003c\/p\u003e \u003cp\u003eIgnoring Ambiguity #1 with Layering 132\u003c\/p\u003e \u003cp\u003eWork-Around to Fix Ambiguity #2, the Fatal Flaw with Layering 133\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 \u003c\/b\u003e\u003cb\u003ePartial and Full Netting Methods 137\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Methods of Aggregation or Netting 137\u003c\/p\u003e \u003cp\u003ePartial Netting 138\u003c\/p\u003e \u003cp\u003eFull Netting 141\u003c\/p\u003e \u003cp\u003eMeasures of Book-Tax Disparity across Partners 142\u003c\/p\u003e \u003cp\u003eFormulating the Problem for Optimal Partner Tax Allocations under Full Netting 143\u003c\/p\u003e \u003cp\u003eFormulating the Problem for Optimal Partner Tax Allocations under Partial Netting 146\u003c\/p\u003e \u003cp\u003eSolving the Convex Optimization Problem of Tax Allocation 148\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 \u003c\/b\u003e\u003cb\u003eComparative Tax Consequences of Layering and Netting Methods 153\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhich Is the Better Method for Allocation of Realized Gains: Layering, Full Netting, or Partial Netting? 153\u003c\/p\u003e \u003cp\u003eLayering Examples Showing Earlier Tax Payment 154\u003c\/p\u003e \u003cp\u003eFull Netting Examples Showing Tax Postponement 158\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 \u003c\/b\u003e\u003cb\u003eTax Efficiency of Hedge Funds 161\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTax Efficiency Considerations for Offshore Hedge Funds 161\u003c\/p\u003e \u003cp\u003eTax Preference Ordering for U.S. Investors 163\u003c\/p\u003e \u003cp\u003eMore Attractive Tax Items to U.S. Investors 167\u003c\/p\u003e \u003cp\u003eLess Attractive Tax Items to U.S. Investors 169\u003c\/p\u003e \u003cp\u003eAn Exception: Special Tax Preference for Gains from U.S. Exchange-Traded Futures Contracts 170\u003c\/p\u003e \u003cp\u003eAmbiguities in Tax Preference 170\u003c\/p\u003e \u003cp\u003eTax Efficiency Steps for U.S. Hedge Funds 170\u003c\/p\u003e \u003cp\u003eA Structure for Tax-Exempt U.S. Entities to Recover Foreign Taxes 173\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 \u003c\/b\u003e\u003cb\u003eHedge Fund Performance and Risk Presentation 175\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePerformance Presentation: CFA Institute GIPS Verification 175\u003c\/p\u003e \u003cp\u003eCalculation of Hedge Fund Returns for Performance Presentation 179\u003c\/p\u003e \u003cp\u003eFacilitating Historical Risk and Return Review for Investors Using GIPS Guidelines 183\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 \u003c\/b\u003e\u003cb\u003eMutual Funds and Venture Funds Compared to Hedge Funds 191\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTax Return Filing of U.S. Partnerships Is an Involved Task 191\u003c\/p\u003e \u003cp\u003eComparison with Tax Allocations Made by Mutual Funds 191\u003c\/p\u003e \u003cp\u003eU.S. Venture Partnerships (Silicon Valley Venture Funds) 196\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 \u003c\/b\u003e\u003cb\u003eEpilogue 203\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEconomic Accounting Is a Common Denominator for U.S. and Offshore Funds 203\u003c\/p\u003e \u003cp\u003eTax Return Filing of U.S. Partnerships Is an Involved Task 204\u003c\/p\u003e \u003cp\u003eCalculating Partner Allocations Is Most of a U.S. Partnership’s Tax Accounting Effort 204\u003c\/p\u003e \u003cp\u003eLayering and Netting Methodologies for Tax Allocation of Capital Gains 205\u003c\/p\u003e \u003cp\u003eExample of Tax Allocation of Capital Gains by Full and Partial Netting in a 100-Partner Setting 205\u003c\/p\u003e \u003cp\u003eTilting Tax Allocations According to Tax Preferences 206\u003c\/p\u003e \u003cp\u003eThe Crown Jewel: Automated Tax Allocation of All Items of Income 206\u003c\/p\u003e \u003cp\u003eThe End of an Era of Layering 207\u003c\/p\u003e \u003cp\u003eAppendix 1 Excerpts of Key U.S. Statutes Discussed in Chapter 1 That Govern U.S. and Offshore Hedge Funds Venture Funds 209\u003c\/p\u003e \u003cp\u003eAppendix 2 Methodology and Implementation Example of Full Netting 229\u003c\/p\u003e \u003cp\u003eAppendix 3 Methodology and Implementation Example of Partial Netting 253\u003c\/p\u003e \u003cp\u003eAppendix 4 Nonabusive Tilting of Tax Allocations According to Tax Preferences 259\u003c\/p\u003e \u003cp\u003eAppendix 5 Eliminating Layering Entirely, by Allocating Dividends, Interest, Capital Gains, and Expenses in One Step 267\u003c\/p\u003e \u003cp\u003eIndex 277 \u003c\/p\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default 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