Tag: ‘private equity firms’

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 […]

Read More

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 […]

Read More

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 […]

Read More

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 […]

Read More

Carlyle, Bain Capital, and the Tax Treatment of “The Carry”

By :: January 12th, 2012

The on-again, off-again battle over how to tax the compensation of private equity managers may be on again, thanks to the confluence of two seemingly unrelated events. The first is the controversy over the role of Bain Capital, the investment partnership whose founders included Republican presidential hopeful Mitt Romney. The second is the disclosure by […]

Read More