Why Litigation Funders Use Prepaid Forward Contracts for Tax Purposes

Legal accounting can be a tricky enterprise, especially after the latest tax law. Something claimants have to consider is their tax bill after securing funding. After all, if they legally sell a portion of their asset (the outcome of their legal claim), they may be on the hook for a large tax bill on that sale. Fortunately, there is a workaround here, and it’s called a prepaid forward contract.

Please log in to read full article
Log In Register