Investment funds sometimes adopt a management structure that is intended to qualify certain limited partner income for an exclusion from self- employment tax.
This type of arrangement was the subject of a recently settled Tax Court case—Sands v. Commissioner.
A KPMG report discusses the case and considers what it might mean to taxpayers and the investment fund industry.
Read a June 2015 report [PDF 152 KB] prepared by KPMG LLP: What’s News in Tax: Active Limited Partners in the Investment Fund Industry and Self-Employment Taxes
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