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




©2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

Subscribe

Current and future KPMG clients may subscribe to TaxNewsFlash email alerts.


Email your contact information.

TaxNewsFlash-United States by year