Funds Talk: January 2019

Topics covered in this issue include: 

• A Qualified Opportunity Fund or a 1031 Exchange? Timing Is Key
  This article offers an overview of the different features of qualified opportunity funds and like-kind exchanges, and although both options may be used to alleviate your immediate tax burden, there are important distinctions between the two.
  
  
• Handling Internet of Things Data in Litigation
  The Internet of Things (IoT) connected everyday objects to the Internet and led to the proliferation of user data. This data, which is now measured in trillions of gigabytes, has profound implications for discovery in litigation. As the law is still changing in this area and few decisions are available, lawyers must extrapolate from other jurisprudence on electronically stored information and be vigilant in ensuring that IoT data is preserved.
  
  
• Hardship Distributions – IRS Clarifies Bipartisan Budget Act of 2018
  The Bipartisan Budget Act of 2018 made several changes with respect to Section 401(k) and 403(b) plans, following which the IRS proposed amendments to its hardship distribution regulations. These provide more time for plan sponsors to implement the legislative changes and provide clarity on these provisions. Although plan amendments are not required for 2018, plan sponsors may need to provide instructions to their recordkeeper prior to the deadline for adopting formal amendments.
  
  
• Something Old, Something New: Securities Enforcement in the Age of Social Media
  The SEC’s recent enforcement action against Tesla and its CEO Elon Musk, stemming from statements Musk made on his Twitter account about taking Tesla private, show that statements made on social media will be subject to the same regulatory scrutiny as other forms of communication. There are some measures that corporations may consider to protect against such risk, although a more nuanced regulatory approach might also be desirable.
  
  
• In Case You Missed It: Most Read Funds Talk Articles of 2018
  • Opportunities in Permanent Capital Vehicles
  • Year in Review: Top Cryptocurrency Stories of 2017
  • Global Regulators Increasingly Shifting Focus to Cryptocurrency