Promotes are taxed as capital gains, making issue critical to industry
Closing the carried-interest loophole is a game of Whac-a-Mole the Democrats just can’t seem to win. And real estate players won’t shed any tears about that.
Carried-interest income is what private-equity and hedge-fund players make when their investments are sold at a profit. This income is taxed as a long-term capital gain, at a lower rate than ordinary income. Crucially for real estate, “promotes,” the share of profits that developers and fund managers get from a project, are treated as carried interest.
...moreCarried-interest income is what private-equity and hedge-fund players make when their investments are sold at a profit. This income is taxed as a long-term capital gain, at a lower rate than ordinary income. Crucially for real estate, “promotes,” the share of profits that developers and fund managers get from a project, are treated as carried interest.
RSK: Score one for real estate investments.
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- - Volume: 10 - WEEK: 33 Date: 8/9/2022 10:16:56 AM -