How are KKR Financial Holdings LLCs distributions taxed?
Our distributions generally will be taxable as ordinary income to our non-exempt shareholders, although a portion of such distributions may be designated by us as long-term capital gain or may constitute a return of capital. A statement setting forth distributions paid during the preceding year and their federal income status will be posted on our website. The distributions do not qualify for the 15% tax rate for “qualified distribution income”. KKR Financial Holdings LLC does not provide legal, accounting or tax advice. Investors are encouraged to discuss the tax treatment of distributions with a professional advisor.