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January 08, 2019 Robert Velotta

Proposed Regs on Business Interest Expense Deduction Limitation to Impact RICs

On November 26, 2018, the IRS released proposed regulations on the Tax Cuts and Jobs Act’s (TCJA) business interest expense deduction limitation. Specific to the investment industry, the guidance will impact regulated investment companies (RICs) using debt — most notably many closed...

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April 26, 2018

Deficiency Dividends Offer Potential Remedy for Regulated Investment Companies

Regulated Investment Companies (RICs) are taxed as corporations, where the entity-level corporate income tax is typically eliminated by applying the dividends paid deduction (DPD) allowed via Internal Revenue Code (IRC) Section 561.   At a basic level, as long as a RIC distributes to...

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December 08, 2017 Jay Laurila

CBOE and CME to List Bitcoin Futures; Creates Tax Considerations for RICs

On December 1, 2017, the Commodity Futures Trading Commission announced its agreement to allow CBOE Global Markets, Inc. and CME Group, Inc. to list bitcoin futures contracts on their exchanges. The futures contracts, the first to be listed on traditional U.S. regulated exchanges, are expected to...

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December 05, 2017 Robert Velotta

Why Mutual Funds Pay December Dividends: An Introduction to Excise Taxation

As year-end approaches, many mutual fund investors understand that their investments in mutual funds may generate dividend income, both ordinary and capital gains, in November or December. However, particularly for new investors and fund managers, below is an overview that provides an...

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May 26, 2017 Robert Velotta

Monitoring Foreign Capital Gains Tax Exposure for RICs

The obligation for registered investment companies (RICs) to pay foreign capital gains tax is not new by any means, but it is gaining more attention lately, making it imperative for fund management to take note.   Foreign tax withholding on interest and dividends has been and continues to...

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