Bloomberg News reports that Morgan Stanley Smith Barney Holdings LLC’s tax status changed to a corporation from a partnership as part of a legal restructuring, triggering the tax gain, the New York-based company said on Tuesday in a quarterly regulatory filing. The firm bought Citigroup's remaining stake in the brokerage joint venture last year.
The fourth quarter will be the third straight featuring a tax benefit for Morgan Stanley, which had gains of $237 million and $609 million in the past two periods. Chief Financial Officer Ruth Porat said last month that the firm’s tax rate over time should be around 30 percent, higher than the 20 percent it reported in the first nine months of this year.
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