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General Session Onsite and Online

PFS2302. A Risk-Based Approach to Evaluating Alternative Investments

This session will review the assets as defined by IRC section 4942(e)(2) and the regulations thereunder as assets other than cash and marketable securities, commonly referred to as "alternative investments". The discussion will include the concerns related to these investments for private foundations including: - unrelated business (UBI) income and the related siloing rules, as well as the use of blocker corps - excess business holding prohibitions - self-dealing related to co-investment and compensation of disqualified persons - valuation and the minimum investment return calculation - additional costs of reporting due to international and state filings generated by these investments -challenges with respect to the reporting of such investments in audited U.S. GAAP financial statements

Learning Objectives:

  • Determine tax laws on Alternative Investments as applicable to PF
  • Analyze provisions of chapter 42 which need to be examined when investing in Alternative Investments
  • Calculate reporting requirements and related challenges of Alternative Investments in financail statements
Date/Time
CPE Credits
1.5
NASBA Field of Study
Taxes
Level
Intermediate
Prerequisites
3-5 Years in the Profession
Advanced Preparation
Understanding of basic partnership law