Ins and Outs of Alternative Investments
Author: Celia Davis, Clark Nuber, Lisa McCreedy
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Whether your organization is new, expanding, or maintaining your activities, determining whether alternative investments are suitable for your tax-exempt organization’s portfolio can be challenging. While they may offer high returns, alternative investments also increase administrative complexity and accounting fees and can create additional required tax filings. Organizations should be equipped to make informed decisions regarding adding or keeping alternative investments within their portfolio. This course will cover the key tax nuances and tax reporting implications of alternative investments to help you evaluate whether they are a good fit for your organization from a tax perspective.
Publication Date: May 2025
Designed For
CPAs, CFOs, auditors, enrolled agents, staff accountants, board members, tax attorneys, and others who work with tax-exempt organizations.
Topics Covered
- Alternative investment types and considerations
- Tax implications of alternative investments
- Unrelated business income from investment activities
- Schedule K-1 review, including state income tax exposure and foreign filings
- Consideration for private foundations
- Other filings and notes
Learning Objectives
- Identify basic considerations for investing in alternatives
- Recognize the foreign and state reporting requirements for alternative investments
- Identify unrelated business income tax traps in alternative investments
- Describe characteristics of an alternative investment
- Identify the first step in considering the tax implications of an alternative investment
- Recognize which net operating losses (NOLs) have a carryover limit
- Identify which form is required to be filed when certain property valued at more than $1 is transferred to a foreign partnership within a 12-month period
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic understanding of investments.
Advance Preparation
None
