Fund Managers Not Yet Taxed on Carried Interest, But Tax Man May Be Coming Soon

Fund managers may be in good shape for 2010 ... although nothing is certain. On March 18, 2010, President Obama signed into law the Hiring Incentives to Restore Employment (HIRE) Act which, aside from providing businesses tax incentives to hire and keep workers on the books, expands the types of...

Carried Interest Tax Challenges Emerging in H.R. 4213 Provisions

If enacted, H.R. 4213 (The American Jobs and Closing Tax Loopholes Act of 2010), will likely cause managers in private equity, venture capital, real estate, and hedge funds to be in a significantly deteriorated tax posture as compared to the status quo. Although H.R. 4213 is a compromise in some respects...

Fund Services Alert: Extenders Bill Update

There [was] no resolution [last] week with respect to the proposed legislation providing for a portion of carried interest to be taxed at ordinary income tax rates. The carried interest legislation was proposed in the tax extender's bill (H.R. 4213) passed by the House on May 28, 2010 (the "House...

McDermott Will & Emery: Carried Interest Language Narrowed, but Remains Far-Reaching

By Kevin J. Feeley , Gary C. Karch and Patrick J. McCurry This newsletter summarizes the Obama administration's recent carried interest tax provision. The provision is not expected to be enacted soon, but the proposal contains drafting changes of interest to those following the discussion. ...

Carried Interest Proposal Blocked in the Senate Yet Again

Recently I mentioned on this blog that the Carried Interest legislation is resurfacing again courtesy of Obama's efforts and the American Jobs Act of 2011. In my post I reasoned that, well, this time the effort may have some legs considering the economic and political climate in the country. Oh,...

You Can't Get There From Here

The Economic View in Sunday's New York Times by Harvard economics professor N. Gregory Mankiw ( Capital Gains, Ordinary Income and Shades of Gray ) defending special tax rates for carried interest brought to mind the old joke about a tourist asking a Maine farmer for directions to Augusta... The...