Tax Reporting and Reconciliation of Hedge Fund and Other Alternative Investment Fund K-1s

Navigating Footnotes and Tying Information to the Tax Return

A live 110-minute CPE webinar with interactive Q&A


Tuesday, May 16, 2017
1:00pm-2:50pm EDT, 10:00am-11:50am PDT


This webinar will provide tax advisers and professionals with the tools needed to accurately reconcile complex Form K-1 for hedge funds and other alternative investments.

Description

For many K-1s received by taxpayers, reporting the pass-through items of income and loss is a fairly straightforward process. However, for hedge funds and other multi-fund pass-through entities, the K-1 often requires the tax preparer to refer to information from numerous footnotes. A Schedule K-1 from an alternative investment fund can easily exceed 50 pages or more, including details for individual transactions among the various funds or investments held.

These K-1s generally have important tax reporting information in the extensive footnotes following the standard page 1 boxes listing income, deductions, credits and distributions. To allocate and report items on the client’s tax return, tax professionals must be able to identify the type of fund the K-1 is generated from and use information found in the footnotes to prepare an accurate and complete return for clients.

Listen as our experienced panel provides detailed and practical guidance to help tax professionals correctly reconcile tax information from these complex K-1 schedules.

Outline

  1. Brief background and history of hedge funds
  2. Overview of Investor, Trader and Fund of Funds
  3. Treatment of income and expenses from hedge fund K-1s
  4. Differences between book and tax income, Item L of Schedule K-1
  5. Net Investment Income Tax - 3.8%
  6. Reconciliation schedule to tie Fund of Fund K-1s to tax return
  7. Footnotes and how to decipher
  8. Go through sample K-1s for each type of fund

Benefits

The panel will review these and other relevant topics:

  • Setting up a schedule to reconcile current-year hedge fund K-1 reporting information
  • Understanding K-1 footnotes to determine items such as passive vs. non-passive income
  • Knowing when a K-1 requires the tax preparer to enter info in return areas other than Sch. E page 2
  • Calculating basis on capital assets sold within a fund to correctly report gain or loss on Form 8949
  • Preparing and maintaining a basis schedule for the hedge fund investment

Learning Objectives

Upon completing this webinar, you will be able to:

  • Understand the type of K-1 you are receiving (i.e. investor fund, trader fund, fund of funds) and how to properly reflect the income, losses, and deductions being reported.
  • How to decipher K-1 footnotes to ensure proper treatment of key pieces of information.
  • Prepare a schedule to reconcile current-year hedge fund K-1 reporting information to what is reflected on the tax return.

Faculty

Laura L. Ross, CPA, Partner
EisnerAmper, San Francisco

Ms. Ross is a Partner in the firm’s Financial Services Group. She has extensive expertise in accounting and tax issues of hedge funds, market makers, and pass-through entities and their owners. She provides tax services to partnerships, LLCs, securities partnerships, market makers, and high net-worth individuals. She frequently speaks at seminars and webinars on hedge fund taxation issues.

Eliot Goldberg, Tax Principal
WithumSmith+Brown, New York

 

Suzy Lee, CPA, MST, Senior Tax Manager
Untracht Early, Florham Park, N.J.

Ms. Lee is experienced in tax advisory services for a varied array of financial services companies and executives including private equity funds, commodities and futures traders, brokerage firms, investment advisors, hedge funds, and multinational financial services organizations. She has specialized knowledge in conducting reviews of both partnerships and corporations with particular focus on engagements that have federal and multi-state compliance, tax estimation, tax planning, and consulting as components. Previously, she spent nearly 15 years with a Big Four as an Asset Management Alternative Investments Director where she served as a tax advisor to financial services companies in the private equity, hedge fund, broker-dealer, investment, and commodities areas.

Stacy L. Palmer, CPA, MBA, MST, Senior Tax Manager
Untracht Early, Florham Park, N.J.

Ms. Palmer's areas of focus include both corporate and individual taxation. She offers guidance on effective tax planning and tax structuring opportunities and assists her corporate clients with related individual tax matters. Previously, she worked at a Big Four accounting firm as a member of the Internal Audit group and Tax department. 


Registration per Person for Live Event

Additional lines for this conference can be purchased at 25% off. For orders of five or more lines, further discounts will apply and will be automatically reflected in the cart.

Live Webinar $147.00

Live Webinar & CPE Processing $182.00


CPE per Person on Live Event

Continuing Professional Education credit processing is available for an additional fee. CPE processing must be ordered prior to the event. To qualify for CPE you may not listen via the telephone.

This program is eligible for 2.0 CPE credits.

  • Field of Study: Taxes.
  • Level of Knowledge: Intermediate.
  • Advance Preparation: None.
  • Teaching Method: Seminar/Lecture.
  • Delivery Method: Group-Internet (via computer).
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of verification codes announced throughout the presentation.
  • Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules, supervising other preparers/accountants. Specific knowledge and understanding of Schedule K-1 reporting on Form 1040 Schedule E, Page 2; familiarity with Schedule K-1 footnotes, passive investment rules, hedge fund and fund-of-fund structures, and basis schedule calculations.

NOTE: CPE credit processing for all attendees must be ordered by 2pm Eastern the day of the program to receive a Certificate of Attendance within 24 hours.


Recordings

Recorded Event

Includes full event recording plus handouts (available after live webinar).

Note: Self-study CPE and EA credits are not offered on recorded events.

Recorded Webinar Download $147.00
Available 48 hours after the live event

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Recorded Audio Download (MP3) $147.00
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DVD (Slide Presentation with Audio) $147.00 plus $9.45 S&H
Available ten business days after the live event

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Registration Plus Recorded Event

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Live Webinar & Webinar Download $194.00

Recorded Webinar Download Only $47.00 with Registration/Webinar Combo

Live Webinar & Audio Download $194.00

Recorded Audio Download (MP3) Only $47.00 with Registration/MP3 Combo

Live Webinar & DVD $194.00 plus $9.45 S&H

DVD (Slide Presentation with Audio) Only $47.00 with Registration/DVD Combo


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Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

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Customer Reviews

The conference was technical, informative and presented at a good pace.

Krystal Ching

KMH

I liked the fact that there was more than one person presenting the material. It's nice to hear multiple perspectives.

Matt Bristow

Cover & Rossiter

Excellent seminar! It was efficient and the important topics were covered at just the right pace; no time was wasted covering information that the participants already knew.

Rhonda G. Williams, CPA

Barraclough & Associates

I appreciated the flow of the information offered and the ease at which I could follow the handouts.

Larry Bruck

WISS & Company

I loved the tools and handouts. Every CPE class should offer these kind of tools.

Jackie Meyer

Sample and Bailey

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