Tag: ‘carried interest’

How Investment Managers (And Maybe You) Would Benefit From Trump’s Tax Plan

By :: October 1st, 2015

Donald Trump says he’d eliminate the tax break on carried interest. What he doesn’t say is he’d give the investment managers who now benefit from that scheme an even bigger tax cut than they get today. And, it turns out, Trump’s new tax regime would not only benefit hedge fund managers, but also millions of […]

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"The Long and Winding Road... Will Never Disappear..."

By :: July 24th, 2015

The Senate’s six-year highway bill inches forward, after dropping a Social Security provision. Majority Leader Mitch McConnell won 14 Democrats’ votes for the bill after he agreed to drop a $2.3 billion offset. The money would have come from barring people with felony warrants from getting Social Security benefits. The Senate will keep voting on […]

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Six-Year Road Funding, Renewals on Repeat, and Investigations

By :: July 13th, 2015

Highway funding: Will the House GOP play the long game? Ways & Means Chair Paul Ryan wants to pair international tax changes with six-year funding for highways, and he wants it done this year. To buy time to flesh out his plan to use revenue from a one-time tax on foreign profits of US companies, […]

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Camp Defines Private Equity as a Business, Would Boost Taxes on Carried Interest

By :: February 27th, 2014

In the tax reform roadmap he released yesterday, House Ways & Means Committee Chair Dave Camp (R-MI) targeted the trillion dollar private equity industry.  Not only did he propose to tax the compensation of private equity managers at ordinary rates rather than lower capital gains rates, he also called the industry out. The official description […]

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The Democrats Never-Ending Search for Tax Loophole Closers

By :: November 13th, 2013

Senate Democrats are circulating a list of a dozen tax “loopholes” they’d like to close as part of a budget package. It is unlikely that Republicans will agree to any of them except as part of broad tax reform, but it is worth taking a quick look at a few on their merits. Some represent […]

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An Upcoming Debate on Whether Private Equity Should Pay Higher Taxes

By :: September 24th, 2013

If you are looking for a break from the dreary debate over the budget, our friends at Tax Analysts will be holding a roundtable discussion on Friday afternoon on the tax treatment of private equity firms. The issue has generated lots of interest since the First Circuit Court of Appeals ruled that a private equity […]

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Court of Appeals Finds a Trade or Business: Could this Mean Higher Taxes for Private Equity?

By :: July 25th, 2013

The First Circuit U.S. Court of Appeals ruled yesterday that private equity funds are engaged in a trade or business under the Employee Retirement Income Security Act (ERISA).  The court said the case, Sun Capital Partners v. New England Teamsters & Trucking, “presented important issues of first impression.”   And the court’s resolution of the trade […]

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Do Private Equity Firms and their Partners Owe Ordinary Income Tax Under Today’s Law?

By :: June 25th, 2013

For a decade, Congress has been debating how to tax managers of private equity firms. The argument is pretty familiar to tax wonks: Should these partners treat this compensation (commonly called carried interest) as capital gains, as they do today? Or should they be taxed at the higher ordinary income rate as President Obama and […]

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Why the IRS Should be Taxing the Profits of Private Equity Funds as Ordinary Income

By :: February 4th, 2013

For years, the battle over carried interest has focused on how to tax the compensation of private equity managers. But a careful reading of  the law suggests that all the business profits of these investment firms, not just the pay of their managers, are ordinary income, and should be taxed that way. Until now, the […]

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Paying Taxes on Capital Gains Early: How Investors are Avoiding Tax Hikes

By :: December 14th, 2012

Normally, at the end of each year, investors sell stock (and other assets) to recognize losses to offset gains recognized earlier in the year. Sometimes they do it the other way around, harvesting gains that can be offset by earlier losses. But this year is different: many investors are recognizing gains, even if they don’t […]

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