1252

In the case of sale, exchange, disposition or transfer of proprietary interests in a fund or designated entity (including that related to the total liquidation of the fund or designated entity), any capital gain attributable to the investment in proprietary interests in the fund or designated entity shall be subject to a ten percent (10%) tax on the amount of the excess of any net long-term capital gains over any net short term capital loss. The individual, estate, trust, partnership or corporation that is an investor in the fund or the designated entity may opt to include said gains as part of his/her gross income on the income tax return for the year in which that gain is recognized, and pay a tax pursuant to the normal tax rates, whichever is most beneficial for the taxpayer.\nThe tax levied by this section shall be paid as provided in §§ 8401 et seq. of Title 13.\nIn the event of a designated entity that is, in turn, an exempt business under the Incentives Act, the investor may also choose to pay taxes on said gains pursuant to the provisions of § 10042(f) of Title 13 or, in the case of a liquidation, to the provisions of § 10044 of Title 13, part of the Incentives

stor may also choose to pay taxes on said gains pursuant to the provisions of § 10042(f) of Title 13 or, in the case of a liquidation, to the provisions of § 10044 of Title 13, part of the Incentives Act.\nHistory —Oct. 6, 1987, No. 3, p. 840, § 12, renumbered as § 13 and amended on July 11, 1996, No. 70, § 13.