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Tax News
Recent Legislative Developments
Recent Legislative Developments
This year is shaping up to be a roller-coaster in tax land. This is probably the closest the US has been to a comprehensive tax reform and if the stars align just right, it may actually happen, despite the expectations of many naysayers. The last few weeks were filled with some notable legislative developments that could have a significant impact on the investment fund industry. First and foremost, the Trump tax plan was finally announced. As Trump would say, the unveiling of the plan was “Huge” and the anticipation rivaled that of a new season of “dancing with the...
May 09, 2017 read more
Carried Interest Loophole – Maybe not in Texas!
Carried Interest Loophole – Maybe not in Texas!
A few days ago the U.S. District Court for the Southern District of Texas issued an opinion that offers a glimpse into the 5th Circuit’s thinking on the carried interest issue. The decision is United States v. Stewart et al. and could be found here. In this case the U.S. sued two partners in an oil and gas partnership. The facts are as follows.  In year 2003, an investor named Hydrocarbon Capital, decided to acquire a portfolio of oil and gas properties from an unrelated corporation. However, the investor did not have the expertise to run and manage the properties. Therefore it...
August 24, 2015 read more
Carried Interest Proposal Blocked in the Senate Yet Again
Carried Interest Proposal Blocked in the Senate Yet Again
This will be a short post. 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, was I wrong!  Contrary to my guess, and making my guess look that sillier, the Senate shut down the bill yesterday in a pretty uniform fashion with all Republicans voting against opening a debate. Democrats are disappointed of course, and if you judge by the post vote...
October 12, 2011 read more
Proposals to Tax Carried Interest at Ordinary Rates are Back
Proposals to Tax Carried Interest at Ordinary Rates are Back
It seems that the efforts to tax investment fund managers’ performance compensation at ordinary income rates had subsided for a long time. Those readers that have followed the issue know that these efforts have been largely unsuccessful since the early inception of the first Carried Interest bill by Senator Levin in year 2007. Now, the Carried Interest proposal resurfaces yet again in the form of a revenue raiser in another Obama favored legislation titled the “American Jobs Act of 2011” (S.1549; H.R.2911). While there are some substantive differences from prior installments, the...
September 26, 2011 read more