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

Navigating Footnotes and Tying Information to the Tax Return

Note: CLE credit is not offered on this program

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

Thursday, August 20, 2020

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

Early Registration Discount Deadline, Friday, July 24, 2020

or call 1-800-926-7926

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. Tax professionals must be able to identify the type of fund the K-1 is generated from and use the 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 the 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. New negative basis tax capital reporting requirements
  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
  9. A general overview of the areas that would impact hedge fund K-1s from the 2017 tax reform


The panel will review these and other relevant topics:

  • Understand the type of K-1 you are receiving (i.e., investor fund, trader fund, fund of funds) and how to reflect the income, losses, and deductions to report accurately
  • Identifying K-1 information that the tax preparer must enter on a return area other than Schedule E, page 2
  • How to decipher K-1 footnotes to ensure proper treatment of critical pieces of information
  • Prepare a schedule to reconcile current-year hedge fund K-1 reporting information to the investors' monthly statements


Ross, Laura
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

Yang, Yvonne
Yvonne Yang

Tax Director

Ms. Yang's practice focuses on financial services including accounting and tax issues of hedge funds, private...  |  Read More

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