KPMG report - Hedge fund investors subject to increased tax on dividend income, Medicare tax 

June 4: Investors in hedge funds may be subject to both higher U.S. federal tax rates and the Medicare tax.

Dividend income received by individuals in the highest income tax brackets will be subject to an 8.8% increase in U.S. federal income tax, resulting in an effective tax rate of 23.8%.

Taxes are increasing for other investment income as well, as most investment income earned by hedge funds will be subject to a new 3.8% Medicare tax.

Read a June 2013 report [PDF 197 KB] prepared by KPMG LLP: What’s News in Tax: When “Net” Means “Gross” and Other Things Hedge Funds Should Know

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