Fund of funds tax considerations: Managing investor and regulatory demands

August 2014
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Fund of funds tax considerations: Managing investor and regulatory demands

At a glance

This document summarizes fund of fund tax considerations as discussed during a webcast by a panel of asset management, state and local tax, and technology specialists within PwC’s Asset Management Tax practice.

New regulatory and legislative requirements are creating reporting challenges for asset managers. As the IRS requires more disclosures and investors demand greater transparency, the volume and complexity of reporting have increased. While the entire asset management industry is affected, the impact on fund of funds is perhaps the greatest.

To provide information on the fund of fund tax considerations, PwC hosted a webcast to address the following topics:

  • Managing data and process activities, including using estimates, consistency in reporting, and new disclosures
  • Fund-level and partner-level tax considerations, including tax basis, unrelated business taxable income (UBTI), entity-level expenses, and tax carry waterfall
  • Steps to prepare for and meet FoF tax requirements