Fund Taxation

  • Overview
  • Attorneys

Investment funds typically elect to be treated as partnerships for federal income tax purposes, regardless of the legal structure chosen for the fund, so that all tax attributes of the fund flow through directly to fund investors. While taxation as a partnership can provide economic efficiencies by eliminating federal and state income taxation at the fund level, Subchapter K of the Internal Revenue Code is highly complex and can lead to unintended tax results. Our corporate finance attorneys work closely with our partnership tax attorneys in connection with the structuring of investment funds so as to take into account all important tax issues relating to fund formation and operations, including structuring of fund allocations, the treatment of guaranteed payments, the maintenance of capital accounts and other elements of federal partnership taxation.