Hedge Fund Taxes
At Akram & Associates, we take pride in being a trusted resource to our alternative investment fund clients providing professional Net Asset Value (NAV) review and timely Schedule K-1 (“K1”) preparation services. Our extensive industry knowledge and industry-specific tax software help to reduce tax reporting errors and deliver high quality documents in a timely and accurate manner.
Key highlights of our personalized accounting and tax services include:
For easy reference, you may download our Alternative Investments Audit & Tax Services brochure (PDF).
Our qualified accounting team is well versed in the nuances of alternative investment fund tax matters, including Qualified Opportunity Zones and Partnership Representative requirements.
I highly recommend Akram & Associates for tax and audit accounting in the financial services sector. Muhammad and his team are top tier professionals and exceeded our expectations.
Dante Federighi - Founder at Fortezza Forza RMC Fund, LLC - Chicago, IL
Akram was Featured in News and Industry Publications
By Lynnlry Browning from Bloomberg published an article in 2019 and featured our founder Muhammad Akram and Akram & Associates. "The IRS in theory matches the statements to federal returns to root out cheaters. But even though a copy goes to the IRS, “you can’t rely on the 1099-B for your return,” said Muhammad Akram, an accountant and the founder of Akram & Associates in Cary, N.C., which caters to small hedge funds.
Since 2011, the statements must track and disclose an investor’s cost basis, or amount paid, for an asset bought that year or later — a requirement that prohibited the earlier practice of self-reporting profits. Brokers have to send the previous tax year’s statements by Jan. 31, but routinely issue corrected statements without warning, sometimes more than once, after they receive details on distributions from mutual funds, real-estate investment trusts and other assets.
Smaller brokerages are more likely to issue statements that misreport basis or dates, Mr. Akram said, because they invest less in the technology required to generate the reports and often don’t use third-party software to tally values. But even Wall Street brokerages have inconsistencies, especially with reporting dividend income, he said. “It’s systemic,” Mr. Akram said. Read full article "Conflicting Tax Forms Create Nighmares for Some Investors" on Bloomberg and Investment News."
In 2018, the Internal Revenue Service (IRS) began requiring partnerships to designate a Partnership Representative to communicate on its behalf in the event of an audit. Our team is comprised of experts in IRS compliance, making Akram & Associates the preferred Partnership Representative for your business.
Our Partnership Representative Services include:
Qualified Opportunity Zones
The Qualified Opportunity Zone program was established by the Tax Cuts and Jobs Act (TCJA) to provide tax incentives for private, long-term investment in economically distressed communities across the U.S. Investors have an opportunity to defer and potentially reduce taxes on recognized capital gains through this program.
Qualified Opportunity Zone Property Explained
Qualified Opportunity Zone Property that is qualified opportunity zone stock, a qualified opportunity zone partnership interest or a qualified opportunity zone business property acquired after December 31, 2017, used in a trade or business conducted in a Qualified Opportunity Zone or ownership interested in an entity operating with such tangible property. Improvements in Qualified Opportunity Zone do not include golf courses, country clubs, massage parlors, hot tub facilities, suntan facilities, racetracks or other facilities used for gambling or liquor stores.
Tax Deferral and Savings
An Opportunity Zone Fund investment provides potential tax savings in three ways:
Muhammad and his team are remarkable. Very efficient, competitively priced, and most importantly, an ongoing advisor to me as I build my company. Their knowledge of best practices for emerging investment managers is extensive, and I completely endorse their services.
Robert Cantwell - Founder at Upholdings Group, LLC - San Francisco, CA
Helpful Articles for Fund Managers
Get in Touch. We'd Love to Help You.
Call us toll-free at 844-386-3829, or use the form on this page to schedule a free consultation. Akram & Associates is ready to assist you with accounting services for your funds.