Guide on how recent US tax reforms are impacting hedge funds and their investor base
On December 22, 2017, US President Donald Trump signed H.R. 1 into law as Public Law 115-97 (the Act), which prescribes fundamental changes to the US federal income tax regime.
The Act includes a number of provisions that impact hedge funds and their investor base. In addition to reducing the rate of corporate tax, the Act also affects deductions, credits, and structures that have been commonly employed by asset managers.
The clock is ticking for asset managers to implement the structural changes that may be needed to mitigate any negative impact of the Act. This brief is intended to provide a quick reference guide on several key observations that may impact hedge funds, its investors, and fund managers.