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
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