All holders are subject to taxes on their investments.

In order to avoid the imposition of federal tax at the fund level, Thousand Broker's private equity firm and the private equity fund must meet Internal Revenue Service (IRS) requirements for sources of income and diversification of portfolio holdings, and must distribute substantially all of its income and capital gains to shareholders annually.

Investors may realize a taxable gain or loss on their federal tax returns if units are redeemed at or prior to the termination of the trust.

Dividends, interest and/or capital distributions are also subject to taxes. Dividends will fluctuate and are not guaranteed.

Thousand Brokers Firm will provide an IRS Form 1099 to its shareholders annually that summarizes the fund’s distributions.

When a shareholder sells shares from the fund on the secondary market on OpenSea, the shareholder may realize either a taxable gain or a loss.

All capital gains tax is applied and paid if a selling of assets is required by the firm or holders.

Taxes for profits distributed in ETH are paid by the holder through their filing method.

All needed information will be provided by the fund firm at needed time.

The basic US tax regime applicable to non-US investors in US-based private equity funds is that they are exempt from taxation on gains from portfolio investment activities, but taxes will still be applied when necessary to comply with all federal investment regulations.

It is also necessary to consider the tax laws of the state and city where the sponsor is located as different rules may apply, potentially subjecting the fund to state or city tax liability.

Limited partnerships (LPs), like general partnerships, are pass-through or flow-through entities.

That means that all partners are responsible for taxes on their share of the partnership income, rather than the partnership itself.

However, limited partners do not pay self-employment taxes. Because they are not active in the business, the IRS does not consider limited partners’ income as earned income. The income received is passive income. 

The Taxpayer Relief Act of 1986 allows limited partners to offset reported losses from passive income.