Tax and compliance software provider responds to market demand for identification and treatment of payment in lieu of a dividend on short sales
G2 FinTech, provider of tax analysis and compliance software for the investment management community, today announced the addition of short dividends / Section 263(h) functionality to the taxable events supported by TaxGopher, the company’s flagship tax analysis and accounting product. The new functionality allows hedge funds, fund administrators and accounting & audit firms to readily track cost basis adjustments necessary to comply with Section 263(h) of the U.S. tax code. Other taxable events supported by TaxGopher include wash sales, constructive sales, basic & identified straddles, qualified dividends and dividends received deductions.
Section 263(h) addresses payment in lieu of a dividend on short sales, and requires both a disallowed deduction and a cost basis adjustment to the underlying position. G2 FinTech President Brian Roberti commented, “Right now many firms manually perform 263(h) calculations. This automated TaxGopher functionality replaces the current error-prone process with on-demand tax analysis capabilities and more accurate tax calculations. This new feature addresses client-voiced requirements, making it easier to comply with the U.S. tax code.”
In parallel, G2 FinTech is participating in two upcoming industry events, continuing its role as a thought leader and educator in the investment management tax analysis space. G2 is a co-sponsor and will have representatives speaking on two panels at the 16th Annual Effective Hedge Fund Tax Practices conference, a two-day event run by Financial Research Associates, November 18-19 at The Princeton Club in New York City. Additionally, G2 will host its fourth Taxable Events Webinar on February 4, 2015 discussing the topic of “Tax Implications of Straddles.” Webinar attendees will have the opportunity to earn CPE credit.