Categories:Corporate,UK

Private equity: more lawyers in the house

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  • Carried Interest

    President Obama intends to tax carried interest received by Private Equity partners as Ordinary Income, rather than the lower Capital Gains rate. This issue was also debated in Parliament back in 2007.

    Now that counsel also stands to receive "carry", I wonder if it would be treated as part of their ordinary income and taxed as such, or treated as capital gain along with other partners managing the funds.

    Does the author or anybody know?

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  • Michelle

    Its simple, create an offshore holding vehicle and place these carried interest in it. It cant be treated as income as it is a one off-payment. Obama can do whatever he wants but tax planning will always survive.

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  • Offshore vehicle

    Michelle, not so easy to do anymore. See
    http://www.klgates.com/newsstand/Detail.aspx?publication=4982

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  • Huh?

    Wow, finally a good new story! Get real... private equity is crashing and burning with the rest of the economy:

    http://www.bloomberg.com/apps/news?pid=20601039&sid=azhmx1M7Kb_I&refer=home

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  • Michelle

    Thank God it is not that easy in the UK, it is this sort of structuringthat is keeping my fully employed

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