Hedge Fund Management Fees Exempt in New Mexico

Monday, November 28th, 2016

 
 
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New Mexico
General

New Mexico has ruled that fees for managing hedge funds through limited partnerships were exempt.

The taxpayer formed limited partnerships and managed them as the general partner. The partnerships used contributions from private investors to make investments. The taxpayer managed the investments and charged a fee for the service.

New Mexico exempts fees for management or investment advisory services for hedge funds. To qualify as a hedge fund, the fund must be private and under the management of a professional firm. The fund must either make certain investments or not be an "investment company."

The ruling states that the taxpayer's limited partnerships qualified as hedge funds. The investors were private, the taxpayer provided professional management services, and the partnerships were not investment companies. Because the taxpayer's management services were for hedge funds, the fees were exempt.

http://www.ttrus.com/sites/default/files/nm/NM_Hedgefund.pdf


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