Hedge Fund Partnership Form 1065 Returns: Identifying Fund Structures and Preparing Tax Filings

Navigating Mark-to-Market Rules, Straddles, and Fund Manager Income Reporting Rules

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Tuesday, June 6, 2017

Recorded event now available

or call 1-800-926-7926
Course Materials

This course will provide tax advisers with a practical introduction to the complexities of preparing a Form 1065 return for a hedge fund or private equity fund partnership. The panel will offer guidance on income classification rules, mark-to-market elections, and preparation of key schedules including K-1s for partners and 106-S for the investment managers. The webinar will also discuss tax reporting issues for foreign partners of U.S. hedge funds, as well as withholding requirements for state income tax and non-resident partners.


Form 1065 Partnership Income Tax Return presents tax advisers and compliance professionals with specific challenges unique to their structures. There are several different ways in which a hedge fund partnership can be set up, and each type of fund partnership contains specific tax characteristics. Tax advisers serving hedge fund or investment partnership clients need to have a practical grounding in the rules and tax treatment of hedge funds to avoid costly taxation consequences.

Listen as our experienced panel provides a useful introduction to key concepts in preparing a hedge fund return. The event will provide practical information for advisers to investors as well as funds and fund managers.



  1. Identifying fund and partnership structure
  2. Classifying income as investor vs. trader
  3. Mark-to-market election considerations
  4. Reporting investment manager fees and income
  5. Reporting wash sales, constructive sales and straddles
  6. Foreign reporting and withholdings


The panel will discuss these and other complex topics:

  • Various hedge fund structures and how each structure impacts the tax reporting of the fund partnership
  • Factors in determining whether to make a Section 475 mark-to-market election
  • Reporting fund manager income and preparing Form 106S
  • Reporting Section 1256 straddles
  • Determining investor vs. trader in reporting income and deductions


Christopher J. Williams, CPA
Christopher J. Williams, CPA

Citrin Cooperman

Mr. Williams is experienced in public accounting, specializing in financial services. His clients include...  |  Read More

Jay M. Laurila, CPA, MT
Jay M. Laurila, CPA, MT

Cohen & Company

Mr. Laurila specializes in tax work for regulated investment companies, hedge funds, ETFs, MLP funds, private equity...  |  Read More

Katie Brandtjen, CPA
Katie Brandtjen, CPA

Senior Manager

Ms. Brandtjen is a Senior Tax Manager in the Financial Services Group. She provides tax compliance and planning...  |  Read More

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