Developers, rejoice: Carried-interest loophole is saved again

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.

RSK: Score one for real estate investments.

- - Volume: 10 - WEEK: 33 Date: 8/9/2022 10:16:56 AM -