Fund Tax Rules Changing
The United States Senate recently approved legislation (which is likely to be signed by the President) that significantly alters tax rules for regulated investment companies subject to Subchapter M of the Internal Revenue Code. Perhaps most significantly, the legislation removes the prohibition on preferential dividends issued by publicly offered RICs (Section 307). The legislation also allows the deferral until the next tax year of certain gains and losses derived after October 31 for excise tax purposes (Section 402).
OUR TAKE: The removal of the preferential dividend prohibition could greatly expand the use of registered funds in multi-manager products because of increased fee flexibility. The excise tax change should help fund-of-funds.
Posted by Todd Cipperman at 12/22/2010 6:46 AM 
Categories: Funds
Tags: mutual fund tax ric preferential dividend
Categories: Funds
Tags: mutual fund tax ric preferential dividend
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