Can Funds Use Equalization Debits and In-Kind Redemptions Together For Tax Efficiency?
Posted by admin Aug 5, 2014 4:26:00 PM
In order to achieve tax efficiency and maintain the single layer of taxation concept of Subchapter M, regulated investment companies (RICs) use various techniques. Two common techniques in the industry are equalization debits and the use of redemptions in-kind instead of cash redemptions. ETFs tend to use in-kind redemptions more than non-ETF groups.
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