Friday, 27 March 2015
Last updated 49 min ago
May 28 2010 | 11:03am ET
Hedge fund and private equity managers will pay higher taxes on their share of their funds’ profits, but not just yet.
The tax bill expected to go to a vote this morning in the House of Representatives would close the so-called “carried-interest” loophole beginning on Jan. 1, 2011, rather than this year, according to House Ways and Means Committee Chairman Sander Levin (D-Mich.). Holding off on the tax hike will give those affected by it a chance to adjust, Levin said.
The proposal, which will go to the Senate after the Memorial Day recess, would tax managers’ performance fee income as ordinary income, rather than capital gains, as is the case now. That could push the tax rate on that income up from 15% to 39.6%, the new top rate for ordinary income tax proposed under the legislation.
The bill would also impose the ordinary income tax rate on money earned by hedge fund and private equity honchos who sell part or all of their firms. That provision is designed to keep managers from skirting the main carried-interest rules.
Unsurprisingly, the alternative investments community is not happy.
“This bill would make investment partnerships the only businesses in America whose owners would be ineligible for long-term capital-gains treatment,” Douglas Lowenstein, head of the Private Equity Council, told Bloomberg News.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…