How much tax will all of the partners have to pay on the


ABC is a hedge fund in the United States. It enters into a number of swaps during the year. The profitable swaps have net gains of S50 million and the losing swaps have net losses of S40 million for the year. All of its investors are US individuals who are in the highest tax bracket of 40%. If the hedge fund is treated as an investor, how much tax will all of the partners have to pay on the swap income? If the hedge fund is treated as a trader how much?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: How much tax will all of the partners have to pay on the
Reference No:- TGS02810516

Expected delivery within 24 Hours