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Feb 19, 2019 · Contractual tax protections on private equity transactions tend to be different from those found on other M&A deals. Where a private equity house is selling, it is likely to be very focused on not having a tail of liability, such as contingent liability under a traditional tax deed.
• Placement fees are often not tax deductible by a manager, making the manager reluctant to bear such fees directly. The typical solution is for the fund to bear the placement fee, but require an offset against management fees of 100% of any placement agent fees paid by such fund.
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Feb 20, 2020 · Individual investors, family offices, investment funds and investment advisors should consider reviewing their investment-related expenditures to identify fees and costs that may be capitalized and treated as part of the cost basis of investments acquired by (or for) the investor.
Nov 7, 2019 · Individual investors who invest in non-trader hedge funds, trader funds, or private equity funds may be losing deductions that were deductible prior to the TCJA.
The market rate for management fees of private equity funds is approximately 1.5%–2% of the fund’s aggregate capital commitments during the fund’s investment period (i.e., the first three to five years of a fund during which it is allowed to invest in new portfolio companies).
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The tax treatment of the first management fee described above (generally 1.5-2% of funds under management), as detailed throughout this guidance applies to any fund which is an investment scheme ...
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Mar 23, 2023 · If you advise companies on the acquisition or disposal of investments, you should consider to what extent professional and other costs will be able to be deducted for tax purposes. Early planning may increase deductibility. What can I take away?
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