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Consult Resources to learn all about Tax Analysis of Securities Transactions (TAST).

Learn about our Taxable Events Webinars.

G2 Tax & Compliance Blog

Welcome to our Blog ... where we share our thoughts on the tax code, securities trading, IRC & CBR compliance, industry events, product enhancements, company news and more.

Tax-Aware Investing Webinar

G2 FinTech Hosts Informative Webinar on Tax-Aware Investing

Wednesday, December 2, 2015

On November 18th we hosted our webinar on “Tax-Aware Investing”. Thank you to our attendees -- tax managers, compliance officers, tax analysts, controllers, chief financial officers and accountants from hedge funds, hedge fund service providers and accounting & audit firms -- for participating in this event.

George Michaels, G2 FinTech Founder and resident authority on tax accounting of investment portfolios lead this webinar. Mr. Michaels began the presentation by defining tax-aware investing as the proactive use of the tax code to optimize after-tax results. To better illustrate how TAI works, throughout the webinar, Mr. Michaels likened TAI reports to a car speedometer that can alert you to the tax implications of your trades or car speed. Mr. Michaels also stated the obvious: in the world of taxes, losses are good because they can be net against gains.

Read full entry.

Tax-Aware Investing Webinar

G2 FinTech to Host Tax-Aware Investing Webinar

Tuesday, November 17, 2015

Imagine the following scenario: A Taxpayer buys 100 shares of XYZ Corporation on May 5, 2015. XYZ produces a dividend whose ex-date is July 7, 2015. What would happen if the Taxpayer sells her shares of XYZ on July 10th, 2015? Would those dividends qualify for preferential tax treatment? What are the tax implications of this possible sell? If the dividends don't qualify, when will they qualify? When can those shares be disposed of so the taxpayer minimizes tax liabilities? Our November 18th webinar: “Tax-Aware Investing” (10:00 am PT / 1:00 pm ET) will answer these and other questions about tax-sensitive investing.

Read full entry.

Webinar 7 Survey Results

Wash Sale Webinar Attendees Report Interest in Tax-Aware Investing (TAI)

Thursday, October 22, 2015

Registration for our upcoming webinar, “Tax-Aware Investing,” has only been open for a few days but seats are filling up fast. This interest in learning how to optimize after-tax returns comes as no surprise to us. Based on survey results from our most recent webinar, “Wash Sales: A Closer Look,” our attendees -- tax practitioners and compliance officers at investment funds and their service providers -- clearly value tax-sensitive investing.

Read full entry.

Webinar 7 Post-Event Blog

Webinar Takes Deep Dive into Wash Sale Rule

Thursday, October 8, 2015

Come 2021, the wash sale rule will turn 100 years old. Longevity has not made it any easier to apply this rule to securities transactions and accurately compute taxable gains and losses. Why? Poorly-defined terminology included in section 1091, namely “substantially identical” securities and the increased use of some of the most complex financial instruments, including options and other derivatives.

To help demystify some of the complexity behind the wash sale rule and respond to feedback from past webinar attendees, on September 30th we re-presented Wash Sales: A Closer Look, our in-depth webinar on section 1091.

Read full entry.

Webinar 7 Pre-Event Blog

Wash Sales Webinar: Valuable Resource on Disallowed Losses

Monday, September 28, 2015

Robo advisors are breathing new life into a rather old tax deferral tactic – tax loss harvesting (TLH). This form of tax sensitive investing involves selling securities at a loss to offset a capital gains tax liability, and robo advisor firms, in addition to low-cost, digital-based investment services, offer continuous TLH services to their retail clients. Institutional clients and the uber wealthy have been reaping the benefits of TLH for some time.

Read full entry.

Tax-Aware Investing

Webinar Survey Results Highlight Interest in Tax-Aware Investing

Wednesday, August 5, 2015

Tax-aware investing (TAI) is important to over half of our "Tax Analysis of Dividends" webinar attendees. Fifty six percent of our attendees reported that they factor in the tax treatment of dividends when making trading decisions. An additional 5% reported that they currently do not consider the tax implications of their securities transactions but would like to. We are not at all surprised by this interest in TAI, which we explore in our blog series "Tax Alpha and the When Factor."

Taxable Events Webinar

Dividends Webinar Hits the Mark

Thursday, July 30, 2015

Let’s face it, webinars about calculating disallowed losses on investment portfolios deal with some pretty complex subject matter -- the U.S. tax code (wash sales, constructive sales and the like) and securities trading. Distilling that material into consumable information and reaching the right audience is no easy feat. So, when our July 15th “Tax Analysis of Dividends” webinar on Qualified Dividends (IRC § 1(h)(11)), Dividends Received Deductions (IRC § 243) and Short Dividends (IRC §263(h)) received unusually positive reviews, we were very pleased.

Read full entry.

Webinar 6 Post-Event Blog

Taxable Events Webinar Takes on Dividends

Monday, July 20, 2015

On July 15th we hosted our 6th taxable events webinar, “Tax Analysis of Dividends.” Similar to attendance for our previous webinars about tax analysis / accounting of securities transactions (TAST), turnout was strong, with repeat attendees. Thank you to all of our webinar participants -- tax managers, compliance officers, tax analysts, controllers, chief financial officers and accountants from hedge funds, hedge fund service providers and accounting & audit firms -- for participating in this event.

Read full entry.

Webinar 6 Pre-Event Blog

Dividend Webinar: Learn How to Calculate the Tax Status of Dividends

Tuesday July 14, 2015

We may be witnessing the beginning of a downward trend in the world of dividends. According to S&P Dow Jones Indices, the first half of 2015 has seen a decline (12.2%) in positive dividend actions compared to the same period in 2014. It is not clear whether or not this decline will continue. Although the future of dividend-producing investments may be uncertain, the tax laws regarding dividend income are quite clear. Ordinary dividends that meet specific criteria can be taxed at a lower long-term capital gains tax rate rather than at a higher tax rate for an individual's ordinary income. What are those criteria? How do you accurately determine when dividends qualify for preferential tax treatment? On July 15th, “Tax Analysis of Dividends,” our 6th Taxable Events webinar, will address these and other questions and provide best practices guidelines on how to accurately compute the tax status of dividends.

Read full entry.

Webinar 5 Post-Event Blog

Another Successful Primer Webinar

Wednesday May 27, 2015

Last week we re-presented Wash Sales, Constructive Sales & Straddles: A Primer, our inaugural taxable events webinar that originally ran in March 2014. Similar to the first time we hosted this primer on tax analysis / accounting of securities transactions (TAST) -- an important process necessary to generate book to tax adjustments -- we had both a strong turnout and Q&A session. Thank you to our attendees -- tax managers, compliance officers, tax analysts, controllers, chief financial officers and accountants from hedge funds, hedge fund service providers and accounting & audit firms -- for participating in this event.

Read full entry.

Tax Alpha Blog Series

G2 Concludes its Tax-Aware Investing Blog Series with Predictive Tax Alerts

Tuesday May 26, 2015

This final post in our blog series explores how predictive tax alerts, which indicate how recognized gains will be impacted if certain securities transactions are executed, can make it possible for managers to avoid taxable events, such as wash sales and straddles. Similar to our post on proactive tax alerts / tax analyses, we discuss how these kinds of tax analyses can make it possible for investment managers to improve after-tax returns and generate tax alpha.

Read full entry.

Tax Alpha Blog Series

G2 Posts Proactive Tax Alerts, Blog 2 of its Tax-Aware Investing Blog Series

Tuesday May 19, 2015

How do you minimize clients' tax bills and demonstrate your value as an investment manager? Harvest tax losses and avoid taxable events by running tax analyses of trading activity at different times of the year. We explore the power of proactive tax alerts and how they can help managers in our 2nd tax-aware investing blog.

Read full entry.

Taxable Events Webinar

Wash Sales? Straddles? Ask Our TAST Experts this Wednesday at 1:00 pm ET

Monday, May 18, 2015

Are total return swaps substantially identical to common stock?

Which holding period requirement takes precedence when dealing with multiple tax adjustments on the same tax lot (say a wash sale and a straddle)?

A little over a year ago, these are some of the questions attendees posited during the first presentation of Wash Sales, Constructive Sales & Straddles: A Primer. Read our March 2014 blog entry. This Wednesday, May 20th at 10:00 am PT / 1:00 pm ET we will re-present this complimentary webinar, which features an important overview of tax analysis / accounting of securities transactions (TAST), specifically IRC sections 1091, 1259 and 1092.

Read Full Entry
Tax Alpha Blog Series

G2 Posts the first of its Tax Alpha Blogs: More tax analyses more often . . . when it counts.

Tuesday, May 12, 2015

We’ve heard it over and over. To affect change, achieve results "It’s not what you know but what you do that counts." Well when information is acquired can have a huge impact on how that information is used and also on results, especially in the world of finance.

Read Full Entry
Tax Alpha Blog Series

G2 to post mini blog series: Tax Alpha and the When Factor

Friday, May 8, 2015

Over the next three weeks, we will explore how investment managers can use intra-year tax alerts – reports on tax implications of securities transactions – to adjust trading activity and harvest tax alpha. Managers can avoid having to report unexpected disallowed losses or even tax liabilities on non-existent gains to clients when they use daily, weekly or monthly proactive and predictive tax alerts. Stay tuned!

Tax & Compliance Conference

G2 Attends Another Annual E&Y Conference

Monday, May 4, 2015

This past Tuesday G2 FinTech attended Ernst & Young LLP's Tenth Annual Domestic Tax Conference. It was filled with useful information about best practices for tax management, as well as the current domestic regulatory environment.

Read Full Entry
Taxable Events Webinar Series

G2 FinTech to Re-present Inaugural Taxable Events Webinar

Monday, April 27, 2015

Back by popular demand, we are re-presenting our very 1st webinar "Wash Sales, Constructive Sales & Straddles: A Primer." Daniel Tilkin and William Fang, G2 FinTech's Tax and Business Analysts respectively, will provide an introduction to key sections (1091, 1259 and 1092) of the Internal Revenue Code. Attendees will have the chance to earn CPE credit and take part in a Q&A session about TAST — tax analysis / accounting of securities transactions — arguably the most costly and complex part of accurately generating investment book to tax adjustments.

Wash Sales Resource Page

G2 Revises Wash Sales Resource Page With More Info. & Examples

Wednesday, April 15, 2015

We've overhauled our Wash Sales resource page with a new look, more information and additional examples of trades that trigger IRC section 1091.

Stayed tuned for more changes to our Resource section on tax analysis / accounting of securities transactions.

CBR White Paper

G2's 4th White Paper on CBR Phase III Offer Guidance on Intermediate Bond Math

Thursday, April 2, 2015

The third and final phase of Cost Basis Reporting (CBR) has kicked in and now brokers must calculate and report bases adjustments for some of the most complex securities: options, securities futures contracts, and less-complex debt acquired on January 1, 2014 or later. The mathematics needed to calculate cost bases for bonds is complex and a topic we continue to write about in our white papers.

A few months ago, we published Phase III Cost Basis Reporting: Basic Bond Math. Our second white paper Phase III Cost Basis Reporting: Intermediate Bond Math builds on this previous paper and offers a more advanced discussion of the math necessary to comply with this phase of the CBR rules. It covers key aspects of the Internal Revenue Code (IRC) regulations that govern debt securities and discusses topics including de minimis rules for amortization, elections, bond premium and bonds with call or put features. The paper also uses examples of securities transactions to illustrate how to accurately calculate bond cost bases.

To read additional white papers on Phase III, please visit the White Papers section of our Resource page. Happy reading!

Tax Straddles Video Clips

G2 Adds Mini-Tutorials on Tax Straddles, Section 1092 to YouTube Channel

Wednesday, March 04, 2015

Want a quick tutorial on offsetting positions and the tax straddles rule? Interested in learning about identified tax straddles but don't have lots of time? Visit our YouTube channel, where you will find video clips about Tax Straddles, Section 1092 of the IRC and excerpts from our webinar, Tax Implications of Straddles. Our YouTube channel also features a video of the entire webinar, which we discuss in our blog Webinar on Tax Straddles Addresses Offsetting Positions and IRC Compliance.

Giving Back

Beyond Auction Items

Thursday, February 19, 2015

If you follow happenings at G2, you will notice that we regularly attend events hosted by Hedge Funds Care, also known as Help For Children (HFC), and update our Events page with highlights of each fundraiser. Recently, G2’s James and Peter Kohli reported that they and other attendees at the Sneaker Ball had a chance to bid on a signed pair of Shaquille O’Neal’s size 22 sneakers. Beyond writing about event highlights and auction items, we thought we would share information about this charity and some of the important work it accomplishes.

Read full entry
Work Anniversary

Here's to Another Five Years, Brian!

Wednesday, February 11, 2015

My how time flies. Five years ago this week, Brian Roberti joined the G2 team as head of sales, marketing and business development. Since then he has been named President and been instrumental to the firm's continued success and growth. Brian joins Gregory Hoch, Daniel Tilkin, Marisell Girton, Amber Yusuf and Jenna Michaels, other G2ers who have hit the five year mark. Happy Fifth Anniversary Brian!

G2 Taxable Events Webinar

Webinar on Tax Straddles Addresses Offsetting Positions and IRC Compliance

Thursday, February 05, 2015

We continue to keep the topic of tax straddles alive and well. Yesterday, we shared our knowledge about this Section of the IRC (1092) and hosted Tax Implications of Straddles, our fourth taxable events webinar. Thank you to our attendees -- tax managers, compliance officers, tax analysts, controllers, chief financial officers and accountants from hedge funds, hedge fund service providers and accounting & audit firms -- for participating in this event, which took a deeper dive into basic, mixed & identified straddles as well as Qualified Covered Calls (QCC), the exception to the straddles rule.

Read full entry
New Office Space

New Office Update

Thursday, January 29, 2015

It's been about a month since we moved into our new office space here at 1156 Avenue of the Americas. We've unpacked seemingly endless numbers of moving boxes and have been spending time hanging artwork. The place is beginning to feel more like ours with each passing day.

We're excited to see the office take shape and welcome a face from the past to our new digs...one of our 2014 summer interns, Marton Pono, just can't get enough of G2 and has come to work for us part-time. Today is his first day on the job. Welcome back Marton!

Check out our FB pix!

G2 Taxable Events Webinar

Tax Straddles Talk to Continue at G2

Thursday, January 29, 2015

You could say we have tax straddles on the brain. We just wrapped up the 2015 Hedge Fund Tax 101 / K-1 Boot Camp conference (Tax Conference Weathers Storm) where Daniel Tilkin talked about the straddles rule/section 1092 of the IRC and loss deferral, holding periods & character rules and more; and next week we will talk more about this taxable event during Tax Implications of Straddles, our 4th taxable events webinar to be held on February 4th at 1:00 ET.

George Michaels will lead this CPE-eligible webinar and touch upon many of the same topics he and Daniel Tilkin covered in the white paper Tax Implications of Straddles. Click here to read this paper and get a sneak peak at some of what you can learn about section 1092 during this complimentary webinar.


For more information about Tax Implications of Straddles, please click here. To register for Tax Implications of Straddles, please click here.

Tax & Compliance Conference

Tax Conference Weathers Storm

Wednesday, January 28, 2015

Well, this FRA-run tax seminar had a different feel to it, with the beast of a blizzard bearing down on the northeast and by all accounts The Princeton Club as well, site of the 2015 Hedge Fund Tax 101 / K-1 Boot Camp conference. Daniel Tilkin and William Fang did a fine job with their co-panelists, talking tax, even as the snow was blowing hard (horizontally) outside. FRA did a good job keeping all attendees, including those from out of town, up to date on the storm’s progress, and making wise decisions to shorten day 1 and to run day 2 via Webinar. Many thanks to The Princeton Club for keeping the fireplace lit right through cocktail hour at close of day 1, and with their workers going home early to beat the storm, kindly converting that into a self-serve beer and wine bar set-up for those attendees staying on. Another fine example of New Yorkers’ adaptability!


Check out our FaceBook pix.

Giving Back

Beyond Auction Items

Thursday, February 19, 2015

If you follow happenings at G2, you will notice that we regularly attend events hosted by Hedge Funds Care, also known as Help For Children (HFC), and update our Events page with highlights of each fundraiser. Recently, G2’s James and Peter Kohli reported that they and other attendees at the Sneaker Ball had a chance to bid on a signed pair of Shaquille O’Neal’s size 22 sneakers. Beyond writing about event highlights and auction items, we thought we would share information about this charity and some of the important work it accomplishes.

Read full entry
Work Anniversary

Here's to Another Five Years, Brian!

Wednesday, February 11, 2015

My how time flies. Five years ago this week, Brian Roberti joined the G2 team as head of sales, marketing and business development. Since then he has been named President and been instrumental to the firm's continued success and growth. Brian joins Gregory Hoch, Daniel Tilkin, Marisell Girton, Amber Yusuf and Jenna Michaels, other G2ers who have hit the five year mark. Happy Fifth Anniversary Brian!

New Office Space

New Office Update

Thursday, January 29, 2015

It's been about a month since we moved into our new office space here at 1156 Avenue of the Americas. We've unpacked seemingly endless numbers of moving boxes and have been spending time hanging artwork. The place is beginning to feel more like ours with each passing day.

We're excited to see the office take shape and welcome a face from the past to our new digs...one of our 2014 summer interns, Marton Pono, just can't get enough of G2 and has come to work for us part-time. Today is his first day on the job. Welcome back Marton!

Check out our FB pix!

New Office Space

G2 Gets New Digs!

Friday, December 19, 2014

Over the past several weeks, the G2 team has been preparing for our NY office move. The December 15th move of office furnishings, equipment and supplies went smoothly, but it will take some more time to completely settle in and put the finishing touches on our new office.

Read full entry

G2 in the News

Accounting Today "Constructive Sale" Blog Features G2's George Michaels

Thursday, October 30, 2014

Michael Cohn of Accounting Today wrote a blog on a topic near and dear to our hearts -- the Constructive Sale rule, Section 1259 of the IRC. Read the "Debits & Credits" blog Handling Tax Complexity on Constructive Sales to learn how short sales and long positions can trigger this rule, which was inspired by some creative accounting on the part of the Estee Lauder family in the 1990s.

We enjoyed catching up with Mr. Cohn and and are well aware that only in this day and age would one blog beget another blog!

Company News

G2 FinTech Names Gregory Hoch Chief Technology Officer

Tuesday, October 7, 2014

We are very proud to announce the promotion of Gregory Hoch to Chief Technology Officer. He has played an integral role in the firm's growth, the success of the G2 FinTech/Advent Software Alliance, and Cost Basis Reporting (CBR) Phase 3 implementations at Prime Brokers. Read our press release.

Tax-Aware Investing Webinar

G2 FinTech Hosts Informative Webinar on Tax-Aware Investing

Wednesday, December 2, 2015

On November 18th we hosted our webinar on “Tax-Aware Investing”. Thank you to our attendees -- tax managers, compliance officers, tax analysts, controllers, chief financial officers and accountants from hedge funds, hedge fund service providers and accounting & audit firms -- for participating in this event.

George Michaels, G2 FinTech Founder and resident authority on tax accounting of investment portfolios lead this webinar. Mr. Michaels began the presentation by defining tax-aware investing as the proactive use of the tax code to optimize after-tax results. To better illustrate how TAI works, throughout the webinar, Mr. Michaels likened TAI reports to a car speedometer that can alert you to the tax implications of your trades or car speed. Mr. Michaels also stated the obvious: in the world of taxes, losses are good because they can be net against gains.

Read full entry.

Tax-Aware Investing Webinar

G2 FinTech to Host Tax-Aware Investing Webinar

Monday, November 16, 2015

Imagine the following scenario: A Taxpayer buys 100 shares of XYZ Corporation on May 5, 2015. XYZ produces a dividend whose ex-date is July 7, 2015. What would happen if the Taxpayer sells her shares of XYZ on July 10th, 2015? Would those dividends qualify for preferential tax treatment? What are the tax implications of this possible sell? If the dividends don't qualify, when will they qualify? When can those shares be disposed of so the taxpayer minimizes tax liabilities? Our November 18th webinar: “Tax-Aware Investing” (10:00 am PT / 1:00 pm ET) will answer these and other questions about tax-sensitive investing.

Read full entry.

Webinar 7 Survey Results

Wash Sale Webinar Attendees Report Interest in Tax-Aware Investing (TAI)

Thursday, October 22, 2015

Registration for our upcoming webinar, “Tax-Aware Investing,” has only been open for a few days but seats are filling up fast. This interest in learning how to optimize after-tax returns comes as no surprise to us. Based on survey results from our most recent webinar, “Wash Sales: A Closer Look,” our attendees -- tax practitioners and compliance officers at investment funds and their service providers -- clearly value tax-sensitive investing.

Read full entry.

Webinar 7 Post-Event Blog

Webinar Takes Deep Dive into Wash Sale Rule

Thursday, October 8, 2015

Come 2021, the wash sale rule will turn 100 years old. Longevity has not made it any easier to apply this rule to securities transactions and accurately compute taxable gains and losses. Why? Poorly-defined terminology included in section 1091, namely “substantially identical” securities and the increased use of some of the most complex financial instruments, including options and other derivatives.

To help demystify some of the complexity behind the wash sale rule and respond to feedback from past webinar attendees, on September 30th we re-presented Wash Sales: A Closer Look, our in-depth webinar on section 1091.

Read full entry.

Webinar 7 Pre-Event Blog

Wash Sales Webinar: Valuable Resource on Disallowed Losses

Monday, September 28, 2015

Robo advisors are breathing new life into a rather old tax deferral tactic – tax loss harvesting (TLH). This form of tax sensitive investing involves selling securities at a loss to offset a capital gains tax liability, and robo advisor firms, in addition to low-cost, digital-based investment services, offer continuous TLH services to their retail clients. Institutional clients and the uber wealthy have been reaping the benefits of TLH for some time.

Read full entry.

Tax-Aware Investing

Webinar Survey Results Highlight Interest in Tax-Aware Investing

Wednesday, August 5, 2015

Tax-aware investing (TAI) is important to over half of our "Tax Analysis of Dividends" webinar attendees. Fifty six percent of our attendees reported that they factor in the tax treatment of dividends when making trading decisions. An additional 5% reported that they currently do not consider the tax implications of their securities transactions but would like to. We are not at all surprised by this interest in TAI, which we explore in our blog series "Tax Alpha and the When Factor."

Taxable Events Webinar

Dividends Webinar Hits the Mark

Thursday, July 30, 2015

Let’s face it, webinars about calculating disallowed losses on investment portfolios deal with some pretty complex subject matter -- the U.S. tax code (wash sales, constructive sales and the like) and securities trading. Distilling that material into consumable information and reaching the right audience is no easy feat. So, when our July 15th “Tax Analysis of Dividends” webinar on Qualified Dividends (IRC § 1(h)(11)), Dividends Received Deductions (IRC § 243) and Short Dividends (IRC §263(h)) received unusually positive reviews, we were very pleased.

Read full entry.

Webinar 6 Post-Event Blog

Taxable Events Webinar Takes on Dividends

Thursday July 16, 2015

Yesterday we hosted our 6th taxable events webinar, “Tax Analysis of Dividends.” Similar to attendance for our previous webinars about tax analysis / accounting of securities transactions (TAST), turnout was strong, with repeat attendees. Thank you to all of our webinar participants -- tax managers, compliance officers, tax analysts, controllers, chief financial officers and accountants from hedge funds, hedge fund service providers and accounting & audit firms -- for participating in this event.

Read full entry.

Webinar 6 Pre-Event Blog

Dividend Webinar: Learn How to Calculate the Tax Status of Dividends

Tuesday July 14, 2015

We may be witnessing the beginning of a downward trend in the world of dividends. According to S&P Dow Jones Indices, the first half of 2015 has seen a decline (12.2%) in positive dividend actions compared to the same period in 2014. It is not clear whether or not this decline will continue. Although the future of dividend-producing investments may be uncertain, the tax laws regarding dividend income are quite clear. Ordinary dividends that meet specific criteria can be taxed at a lower long-term capital gains tax rate rather than at a higher tax rate for an individual's ordinary income. What are those criteria? How do you accurately determine when dividends qualify for preferential tax treatment? On July 15th, “Tax Analysis of Dividends,” our 6th Taxable Events webinar, will address these and other questions and provide best practices guidelines on how to accurately compute the tax status of dividends.

Read full entry.

Webinar 5 Post-Event Blog

Another Successful Primer Webinar

Wednesday May 27, 2015

Last week we re-presented Wash Sales, Constructive Sales & Straddles: A Primer, our inaugural taxable events webinar that originally ran in March 2014. Similar to the first time we hosted this primer on tax analysis / accounting of securities transactions (TAST) -- an important process necessary to generate book to tax adjustments -- we had both a strong turnout and Q&A session. Thank you to our attendees -- tax managers, compliance officers, tax analysts, controllers, chief financial officers and accountants from hedge funds, hedge fund service providers and accounting & audit firms -- for participating in this event.

Read full entry.

Taxable Events Webinar Series

G2 FinTech to Re-present Inaugural Taxable Events Webinar

Monday, April 27, 2015

Back by popular demand, we are re-presenting our very 1st webinar "Wash Sales, Constructive Sales & Straddles: A Primer." Daniel Tilkin and William Fang, G2 FinTech's Tax and Business Analysts respectively, will provide an introduction to key sections (1091, 1259 and 1092) of the Internal Revenue Code. Attendees will have the chance to earn CPE credit and take part in a Q&A session about TAST — tax analysis / accounting of securities transactions — arguably the most costly and complex part of accurately generating investment book to tax adjustments.

Wash Sales Resource Page

G2 Revises Wash Sales Resource Page With More Info. & Examples

Wednesday, April 15, 2015

We've overhauled our Wash Sales resource page with a new look, more information and additional examples of trades that trigger IRC section 1091.

Stayed tuned for more changes to our Resource section on tax analysis / accounting of securities transactions.

CBR White Paper

G2's 4th White Paper on CBR Phase III Offer Guidance on Intermediate Bond Math

Thursday, April 2, 2015

The third and final phase of Cost Basis Reporting (CBR) has kicked in and now brokers must calculate and report bases adjustments for some of the most complex securities: options, securities futures contracts, and less-complex debt acquired on January 1, 2014 or later. The mathematics needed to calculate cost bases for bonds is complex and a topic we continue to write about in our white papers.

A few months ago, we published Phase III Cost Basis Reporting: Basic Bond Math. Our second white paper Phase III Cost Basis Reporting: Intermediate Bond Math builds on this previous paper and offers a more advanced discussion of the math necessary to comply with this phase of the CBR rules. It covers key aspects of the Internal Revenue Code (IRC) regulations that govern debt securities and discusses topics including de minimis rules for amortization, elections, bond premium and bonds with call or put features. The paper also uses examples of securities transactions to illustrate how to accurately calculate bond cost bases.

To read additional white papers on Phase III, please visit the White Papers section of our Resource page. Happy reading!

G2 Taxable Events Webinar

Webinar on Tax Straddles Addresses Offsetting Positions and IRC Compliance

Thursday, February 05, 2015

We continue to keep the topic of tax straddles alive and well. Yesterday, we shared our knowledge about this Section of the IRC (1092) and hosted Tax Implications of Straddles, our fourth taxable events webinar. Thank you to our attendees -- tax managers, compliance officers, tax analysts, controllers, chief financial officers and accountants from hedge funds, hedge fund service providers and accounting & audit firms -- for participating in this event, which took a deeper dive into basic, mixed & identified straddles as well as Qualified Covered Calls (QCC), the exception to the straddles rule.

Read full entry
G2 Taxable Events Webinar

Tax Straddles Talk to Continue at G2

Thursday, January 29, 2015

You could say we have tax straddles on the brain. We just wrapped up the 2015 Hedge Fund Tax 101 / K-1 Boot Camp conference (Tax Conference Weathers Storm) where Daniel Tilkin talked about the straddles rule/section 1092 of the IRC and loss deferral, holding periods & character rules and more; and next week we will talk more about this taxable event during Tax Implications of Straddles, our 4th taxable events webinar to be held on February 4th at 1:00 ET.

George Michaels will lead this CPE-eligible webinar and touch upon many of the same topics he and Daniel Tilkin covered in the white paper Tax Implications of Straddles. Click here to read this paper and get a sneak peak at some of what you can learn about section 1092 during this complimentary webinar.


For more information about Tax Implications of Straddles, please click here. To register for Tax Implications of Straddles, please click here.

G2 Taxable Events Webinar

G2 Welcomes Repeat Attendees for Taxable Events Webinar Series

Wednesday, January 21, 2015

We've looked at the numbers and the names and noticed that many of the attendees from our first webinar Wash Sales, Constructive Sales & Straddles: A Primer have signed up to learn more about tax straddles and registered for next month's Tax Implications of Straddles webinar. We're excited to have so many repeat attendees. For those of you who missed our inaugural webinar, you can view the video Wash Sales, Constructive Sales & Straddles: A Primer on our Youtube channel. A mini tutorial on Tax Straddles is also available.

G2 Taxable Events Webinar

G2 to Host Webinar on Straddles Rule

Thursday, January 8, 2015

What's the difference between an "identified" straddle and a "basic" straddle? When do 1256 contracts invoke the "mixed" straddle rule? We will answer these questions and more during Tax Implications of Straddles, our fourth taxable events webinar. Join us on February 4, 2015 at 1:00 ET for this complimentary webinar about section 1092 of the IRC. Participants can earn 1 CPE credit in the field of tax.

To get more information and register, click here.

Read our press release G2 FinTech Announces Fourth in Series of Taxable Events Webinars.

CBR White Paper

G2's 3rd White Paper on CBR Phase III Takes on Basic (Yet Complex) Bond Math

Thursday, December 4, 2014

Cost Basis Reporting, Phase III requires brokers and taxpayers to calculate basis adjustments for options, securities futures contracts, and less-complex debt acquired on January 1, 2014 or later. Phase III Cost Basis Reporting: Basic Bond Math walks readers through the "basic" yet complex fixed income math (compounding and non-linear equations) necessary to create and / or read 1099-B, 1099-INT, and 1099-OID statements. It focuses on long-term debt issued in 1985 or after, OID & non-OID bonds, and includes a spreadsheet that details how the paper's many examples are calculated.

To read additional white papers on Phase III, please visit the White Papers section of our Resource page. Happy reading!

G2 YouTube Channel

G2 Adds Video Clips on the Constructive Sale rule to YouTube Channel

Wednesday, December 3, 2014

As promised, we continue to update our YouTube channel with video clips from our Taxable Events Webinar Series. Our newest video clips include excerpts from our "Constructive Sales: The Exceptions" webinar. Now you can watch mini tutorials about the Serial Hedge Exception and Closed Transaction Exception rules and other aspects of Section 1259.

G2 YouTube Channel

G2 YouTube Channel Now Features Mini Tutorials on Taxable Events

Thursday, October 30, 2014

We’ve added video clips / mini tutorials to our YouTube channel! For instance, our Wash Sale video clip includes a definition of Section 1091 of the IRC and examples of securities transactions that trigger this taxable event. It also includes a mini tutorial on Branching, one on Chaining and another one on Substantially Identical – all key concepts behind Section 1091. These video clips and others like them are excerpts from our first three webinars – Wash Sales, Constructive Sales & Straddles: A Primer; Wash Sales: A Closer Look and Constructive Sales: The Exceptions. As we host more webinars, we will continue to add more video clips. Our next webinar is Tax Implications of Straddles, February 4, 2015.

G2 Taxable Events Webinar

Advanced Webinar on Constructive Sale Rule Tackles Tough Concepts

Thursday, October 16, 2014

Thank you to our attendees for participating in Constructive Sales: The Exceptions, an advanced discussion on Section 1259 of the U.S. tax code and our 3rd Taxable Events Webinar. During last week's webinar, George Michaels, an authority on tax analysis/accounting of securities transactions (TAST) discussed the two exception rules – Closed Transaction Exception and Serial Hedge Exception. Taxpayers must understand these rules in order to identify when trades result in a constructive sale and to accurately calculate realized gains and losses.

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G2 Taxable Events Webinar

How to prepare for our advanced webinar on constructive sales: Get a good night's sleep, eat a healthy lunch and read our white paper

Thursday, October 2, 2014

Risk reduction or a new constructive sale? Order dependence in the Serial Hedge Exception. Apparent retroactivity and circularity. We will discuss these topics and more during our October 8th webinar Constructive Sales: The Exceptions. This web seminar will cover the Closed Transaction Exception and Serial Hedge Exception, two key exceptions to the Constructive Sale rule. To get the most out of this webinar, which goes beyond the basics of Section 1259 of the U.S. tax code, please consult our white paper on this topic Advanced Topics in Constructive Sales: The Exceptions.

 

G2 Taxable Events Webinar

Cosmetics, Clinton and Constructive Sales

Thursday, September 25, 2014

When can you avoid the constructive sale rule? To learn more about Section 1259 and to prep for our upcoming webinar -- Constructive Sales: The Exceptions, read our primer on this taxable event, Constructive Sales.

G2 Taxable Events Webinar

G2 FinTech to Hold 3rd Taxable Events Webinar -- Constructive Sales: The Exceptions

Monday, September 15, 2014

What's a "temporary" hedge? What's a "true" box? How do you determine when the Closed Transaction Exception has been satisfied and a constructive sale may safely be ignored? We will answer these questions and more during Constructive Sales: The Exceptions, our third taxable events webinar. Join us on October 8, 2014 at 1:00 ET for this complimentary webinar about the Closed Transaction Exception and Serial Hedge Exception, two key exceptions to the constructive sale rule (section 1259) of the IRC. Participants can earn 1 CPE credit in the field of tax. Read our press release G2 FinTech Announces Third Webinar of Series on Taxable Events and Investment Portfolios.

CBR White Paper

G2 White Paper Provides Instruction on 1099-b Production for Cost Basis Reporting (CBR), Phase 3 Compliance

Thursday, September 4, 2014

Do we defer before we amortize or vice-versa? Do we treat Buy-Buy-Sell wash sales differently than Buy-Sell-Buy wash sales when the security being traded is a bond?

These are just some of the kinds of difficult questions brokers must be able to answer in order to comply with CBR, Phase 3 and produce accurate 1099-b tax statements on some of the most complex financial instruments -- options, securities futures contracts, and less complex debt -- acquired on January 1, 2014 or later. For guidance on complying with Phase 3 and a review of amortization rules (integral to calculating cost basis on debt), read our latest whitepaper Phase III Cost Basis Reporting: The Basics.

CBR White Paper

New G2 White Paper — Phase III Cost Basis Reporting: A Guide to Complying with Expanded Transfer Statement Information Requirements

Tuesday, July 15, 2014

In April 2013, the U.S. Treasury Department and IRS issued final regulations for Phase III of the Cost Basis Reporting (CBR) requirements, which address certain securities futures, debt instruments and options. Our new white paper explains how to comply with the Expanded Transfer Statement Information Requirements (§1.6045A-1) set forth in this third and final implementation phase of the CBR reporting law. According to the Transfer Statement Enhanced Information Requirements, when a broker transfers certain securities futures contracts, debt instruments, and options (as defined by §1.6045-1(a)(18)) to another broker, key pieces of data must be reported to the receiving broker.  This reporting is mandatory for transfers on or after January 1, 2015, when the securities are acquired after January 1, 2014.


G2 Taxable Events Webinar

Strong Turnout for “Wash Sales: A Closer Look” Webinar

Tuesday, June 24, 2014

Thank you to our many attendees for participating in Wash Sales: A Closer Look, last week’s 2nd Taxable Events Webinar. George Michaels, our resident authority on tax analysis/accounting of securities transactions (TAST) led an advanced discussion of section 1091 of the tax code. Michaels focused on “wash sale rule headaches” and here’s some of what he covered.

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Tax & Compliance Conference

G2 Attends Another Annual E&Y Conference

Monday, May 4, 2015

This past Tuesday G2 FinTech attended Ernst & Young LLP's Tenth Annual Domestic Tax Conference. It was filled with useful information about best practices for tax management, as well as the current domestic regulatory environment.

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Tax & Compliance Conference

Tax Conference Weathers Storm

Wednesday, January 28, 2015

Well, this FRA-run tax seminar had a different feel to it, with the beast of a blizzard bearing down on the northeast and by all accounts The Princeton Club as well, site of the 2015 Hedge Fund Tax 101 / K-1 Boot Camp conference. Daniel Tilkin and William Fang did a fine job with their co-panelists, talking tax, even as the snow was blowing hard (horizontally) outside. FRA did a good job keeping all attendees, including those from out of town, up to date on the storm’s progress, and making wise decisions to shorten day 1 and to run day 2 via Webinar. Many thanks to The Princeton Club for keeping the fireplace lit right through cocktail hour at close of day 1, and with their workers going home early to beat the storm, kindly converting that into a self-serve beer and wine bar set-up for those attendees staying on. Another fine example of New Yorkers’ adaptability!


Check out our FaceBook pix.

Tax & Compliance Conference

G2 to Sponsor/Speak at  Hedge Fund Tax 101 and K-1 Boot Camp Conference

Thursday, January 22, 2015

Next week at the Princeton Club in NYC we will join our industry colleagues and fellow panelists -- Anthony Tuths, Partner (Withum, Smith + Brown PC) and Joseph Heavey, Tax Partner (KPMG LLP) -- and talk tax. On January 26th, day one of this two-day event, Daniel Tilkin, Senior Tax Analyst & Software Engineering Team Lead and William Fang, Senior Business Analyst, will participate on the Taxation of Investment Transactions and Financial Instruments Parts 1 & 2 panels, respectively.

We look forward to this Financial Research Associates (FRA) tax conference. 

TabbFORUM Video

TabbFORUM Video on Tax-Informed Investing & Creating Value for Clients

Wednesday, December 17, 2014

In an effort to minimize capital gains / tax liabilities and pass along savings to clients, more funds are employing a tax-informed investing strategy. They are gathering data on taxable gains and losses on their portfolios and using that information in their investment and trading decisions. That means that tax accounting has evolved from a once-a-year task to something funds find value in doing on a daily basis. George Michaels talks to Alex Tabb, Tabb Group, about this evolution in tax accounting in Holiday Bonus: Tax-Informed Investing.

Tax & Compliance Conference

Strong Turnout at Annual Hedge Fund Tax & Compliance Conference

Thursday, November 20, 2014

We saw a great turnout at this week's 16th Annual Effective Hedge Fund Tax Practices Conference. With plenty of representation across hedge funds, fund administrators, accounting firms and advisors, we met new contacts and re-connected with clients and old friends.

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Tax & Compliance Conference

G2 to Talk Tax at Annual Hedge Fund Tax & Compliance Conference

Monday, November 17, 2014

G2 is a co-sponsor and will have representatives speaking on two panels at the 16th Annual Effective Hedge Fund Tax Practices Conference, run by Financial Research Associates, November 18-19, The Princeton Club, NYC.

On Wednesay, November 19, day two of the conference, William Fang, G2's senior engineer and business analyst, will join George Teixeira of Anchin, Block & Anchin LLP to speak on the Wash Sales, Short Sales, Constructive Sales and Constructive Ownership Transactions panel. Daniel Tilkin, partner and senior tax analyst at G2, will join his colleagues Matthew A. Stevens (Ernst & Young) and Laura Ross (Eisneramper) and talk on the 1256 Contracts, Section 988 and Straddles panel.

AdventConnect 2014

G2 Wraps Up Another Successful AdventConnect Conference

Tuesday, September 16, 2014

Las Vegas, NV-- Once again, the G2 FinTech team has enjoyed a successful AdventConnect conference, this time back in Las Vegas to participate as a co-sponsor and Advent Alliance Business Partner. Pete Hess, Advent CEO, kicked off the conference with his thoughts on how the company can make faster progress on creating better software offerings for their customers: imagine, listen, and create.

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AdventConnect 2014

G2 is Sponsor and Exhibitor at AdventConnect 2014

Friday, September 5, 2014

As an Advent Alliance Partner, we are excited to sponsor and exhibit at Advent's annual U.S. client conference, AdventConnect 2014. Stop by Booth #25 and chat with Brian Roberti, Megan Bilkie and James Kohli to learn how G2 software extends the capabilities of Advent's Geneva platform to help firms with IRC compliance.

Fixed Income Conference

G2 FinTech Gleans Valuable Information at “Investing in Non-Traditional Fixed Income” Conference

Tuesday, June 10, 2014

Last week G2 FinTech attended the Financial Research Associates conference on Investing in Non-Traditional Fixed Income where investment managers, portfolio managers, strategists, and consultants shared useful information on the state of alternative fixed-income investments. Here’s just some of what we heard.

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Tax Alpha Blog Series

G2 Concludes its Tax-Aware Investing Blog Series with Predictive Tax Alerts

Tuesday May 26, 2015

This final post in our blog series explores how predictive tax alerts, which indicate how recognized gains will be impacted if certain securities transactions are executed, can make it possible for managers to avoid taxable events, such as wash sales and straddles. Similar to our post on proactive tax alerts / tax analyses, we discuss how these kinds of tax analyses can make it possible for investment managers to improve after-tax returns and generate tax alpha.

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Tax Alpha Blog Series

G2 Posts Proactive Tax Alerts, Blog 2 of its Tax-Aware Investing Blog Series

Tuesday May 19, 2015

How do you minimize clients' tax bills and demonstrate your value as an investment manager? Harvest tax losses and avoid taxable events by running tax analyses of trading activity at different times of the year. We explore the power of proactive tax alerts and how they can help managers in our 2nd tax-aware investing blog.

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Tax Alpha Blog Series

G2 Posts the first of its Tax Alpha Blogs: More tax analyses more often . . . when it counts.

Tuesday, May 12, 2015

We’ve heard it over and over. To affect change, achieve results "It’s not what you know but what you do that counts." Well when information is acquired can have a huge impact on how that information is used and also on results, especially in the world of finance.

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Tax Alpha Blog Series

G2 to post mini blog series: Tax Alpha and the When Factor

Friday, May 8, 2015

Over the next three weeks, we will explore how investment managers can use intra-year tax alerts – reports on tax implications of securities transactions – to adjust trading activity and harvest tax alpha. Managers can avoid having to report unexpected disallowed losses or even tax liabilities on non-existent gains to clients when they use daily, weekly or monthly proactive and predictive tax alerts. Stay tuned!

U.S. Tax Code

"Substantially" -- An Example of Another Bad Adverb

Wednesday, October 8, 2014

Today's Wall Street Journal article, "Lawyers, Judges Modify the View That Adverbs Are Mostly Bad" discusses how adverbs can dramatically change the meaning of certain laws and lead to countless appeals and court cases. The term "substantially identical" is a perfect example of this. When Congress passed the Revenue Act of 1921, it used the term "substantially identical" to define what constituted a replacement security/position per the Wash Sale rule, Section 1091.

The unclear meaning behind this poorly-defined term engendered the 1939 seminal court case Hanlin v Commisioner, which helped clarify what is meant by “substantially” and resulted in guidelines for determining whether two different bonds are substantially identical to one another. To learn more about this case, in which one judge stated that "substantially" was an "elastic weasel word," please read our white paper, Advanced Topics in Constructive Sales: The Exceptions.

'40 Act Funds

Change = Opportunity: '40 Act Funds Gaining Traction

Thursday, August 8, 2014

Every enterprise strives to sell an existing product into a new marketplace. '40 Act funds have been around for a while and are a good example of this. A blend between hedge fund investing strategies with the structure of a mutual fund, '40 Act funds represent a growing opportunity to tap into the liquid alternative space.

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