Kara Friedenberg discusses the future impact of the new tax imposed by the Patient Protection and Affordable Care Act. The law imposes on individuals, estates, and trusts a new Medicare tax equal to 3.8 percent on net investment income. Friedenberg explores how the the tax will apply to the alternative investments industry as well as whether the distributive share of income received from funds, management companies, and general partner entities will be subject to the tax. Lastly, she discusses options, structures, and issues that should be considered going forward. The full article may be viewed at Tax Analysts.
See Kara Friedenberg, "Impact of the 3.8 Percent Next Investment Tax on Alternatives," Tax Notes (2012 TNT 14-12, Jan. 4, 2012).
Posted by Andrew Hodes, Associate Editor, Wealth Strategies Journal.
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