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

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

Learning Objectives

After completing this course, you will be able to:

• Recognize various types of hedge fund structures and determine how the fund partnership’s structure impacts partnership tax reporting
• Determine how fund managers must report income from the fund
• Discern the factors in determining whether to exercise a Section 475 mark-to-market election
• Identify rules specific to classifying hedge fund income and deductions

• 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 attendance verification prompts displayed throughout the program
• 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 partnership structure, operating agreements and liquidation, including partner capital accounts, allocation and distributions; familiarity with hedge fund partnerships, mark-to-market elections, and preparation of Form 1065.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

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