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

Navigating Footnotes and Tying Information to the Tax Return

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

Conducted on Tuesday, May 16, 2017

Recorded event now available

or call 1-800-926-7926
Program Materials

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.


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.



  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


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


Laura L. Ross, CPA
Laura L. Ross, CPA


Ms. Ross is a Partner in the firm’s Financial Services Group. She has extensive expertise in accounting and tax...  |  Read More

Eliot Goldberg, CPA, MBA (Tax)
Eliot Goldberg, CPA, MBA (Tax)


Mr. Goldberg is a tax specialist in the Firm’s Financial Services and Investment Group. With more than 20 years...  |  Read More

Suzy Lee, CPA, MST
Suzy Lee, CPA, MST

Senior Tax Manager
Untracht Early

Ms. Lee is experienced in tax advisory services for a varied array of financial services companies and executives...  |  Read More

Stacy L. Palmer, CPA, MBA, MST
Stacy L. Palmer, CPA, MBA, MST

Senior Tax Manager
Untracht Early

Ms. Palmer's areas of focus include both corporate and individual taxation. She offers guidance on effective tax...  |  Read More

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