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New York hedge fund managers aim to avoid city tax by working from home

Firms say many fees were for services performed outside the city and therefore not subject to the city tax

Many employees at New York City hedge funds and other investment firms are now scattered around the region, working from home. Some view that as an opportunity to avoid a New York City tax, tax specialists say.

The city’s 4% unincorporated business tax raises about $2bn a year for the city by taxing investment fund managers, law firms and other individually owned businesses, based on the portion of sales or services performed within the city.

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