Special Commentary: Tax Treatment of Investment Companies by the State – Corporation Tax

0

To print this article, all you need to do is be registered or log in to Mondaq.com.

Download a PDF of this piece

Kelvin Lawrence, partner of Dinsmore, was published in Bloomberg tax with his article “Special Commentary: State Tax Treatment of Investment Partnerships.” Read an excerpt below.


The Multistate Tax Commission has undertaken an ambitious project on state taxation of partnerships. Their partnership task force is made up of volunteers from numerous state tax departments, with expert assistance from MTC attorneys Helen Hecht and Chris Barber. His first milestone was the development of a plan that divided the task force’s workload into four groups of issues: taxation of income and partnership elements; taxation of gains (losses) from the sale of an interest in a partnership; entity-level tax issues; and administration and enforcement.

The first topic that MTC staff chose and the working group approved for detailed analysis was “the trillions of dollars flowing through investment partnerships.“MTC staff prepared a detailed white paper, State tax treatment of investment partnerships, which is useful reading to understand the depth and breadth of the issues. Section II.B. indicates that investment partnerships, broadly defined as the industry segment of finance and holding companies, accounted for 70% of all reported partnership revenue during the years studied, which explains why investment partnerships investment and their partners should be analyzed first.


Read the full article here.

www.dinslaw.com

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

POPULAR ARTICLES ON: United States Tax

Personal Planning Strategies – July 2022

Proskauer Rose LLP

A recent decision by the New York Court of Appeals has major implications for people who own a home in New York State but do not consider themselves New York State tax residents.

Top Tax Issues When Buying a US Business

Torys LLP

The US market continues to be an attractive target for foreign companies and investors. Due to the complexity of US tax rules, the US tax treatment of an acquisition can significantly…

Share.

Comments are closed.