McDermott Will & Emery is pleased to invite you to a complimentary webcast focused on the implications of the derivative reform proposals included as part of the discussion draft of The Modernization of Derivatives Tax Act (MODA).
- Consequences of proposed mark-to-market accounting, including valuation considerations
- Tax character implications, including the repeal of the 60/40 rules for Section 1256 contracts
- The proposed definition of a derivative and the treatment of certain “embedded derivatives”
- Mark-to-market exceptions, including qualifying business hedging transactions
- The proposed investment hedging unit (IHU) rules that would force taxpayers engaging in certain risk management transactions for investment assets to adopt mark-to-market accounting and ordinary tax character for certain offsetting non-derivative positions
For more information about the webinar, please contact Katie Cavanagh.
About The Modernization of Derivatives Tax Act (MODA):
On May 18, 2016, Senator Ron Wyden, Senate Finance Committee Ranking Member, released a discussion draft of The Modernization of Derivatives Tax Act (MODA). MODA includes many of the items affecting the taxation of derivatives that were contained in Chairman Camp’s stand-alone 2013 discussion draft, with some noteworthy additions and revisions.
Similar to Chairman Camp’s 2013 proposal, MODA would attempt to provide uniformity in the tax treatment of derivative transactions by requiring all non-exempt derivative positions to be accounted for on a mark-to-market basis, with resulting gains or losses uniformly treated as ordinary. These derivative reform proposals would, if enacted, dramatically alter the tax character and/or timing of income for derivative products entered into by many taxpayers, including individuals, trading firms and businesses.
CLE credit for this program is pending in the following states: CLE credit for the live presentation of this program is pending in the following states: California, Illinois and New York. A Uniform Certificate of Attendance will be made available to participants requesting CLE credit in all other states. CPE credit is also pending. A Uniform Certificate of Completion will be made available to participants requesting CPE credit. Credit shall be awarded only for attendance of the entire webinar; no partial credit shall be awarded for attending a portion of the webinar. Please note that in accordance with applicable state MCLE rules regarding attendance validation, each attendee seeking credit must log in to the webinar individually. Credit will not be granted for multiple attendees using one log in. Please be advised that CLE credit will not be approved for on demand/recorded viewings of this program in the states listed above. Attendees seeking credit in other states should consult their state CLE accrediting agency to determine whether self-study credit can be earned for on demand/recorded viewing of this program.