Ruling on Carried Interest Negative for Money Managers

Discussion in 'Politics' started by Toro, Aug 6, 2011.

  1. Toro
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    Toro Diamond Member

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    A US tax court has ruled that managing other people's in an investment partnership is a service and not an investment. Thus, it is likely that the fees paid from the gains from managing an investment partnership is not a capital gain and thus subject to ordinary taxation rates.

    Tax Report: 'Carried Interest' in the Cross Hairs - WSJ.com
     
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  2. dilloduck
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    dilloduck Diamond Member

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    I'm beginning to think that manuipulating money is a profession that is older than prostitution but not quite as honorable.
     
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  3. BoycottTheday
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    BoycottTheday CEO

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    Makes ya wonder if people would still grow veggy gardens if the govt confiscated half the crop.
     
  4. dilloduck
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    dilloduck Diamond Member

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    I pay a veggie manager to handle my gardens for me.
     
  5. Mr. H.
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    Not sure about the specifics of the Dagres case but as I recall, partners file partnership returns and their individual incomes are carried over to the 1040. Those incomes, which include profits, are subject to the Self Employment Tax which in itself takes a hefty bite.
     
  6. Truthmatters
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    Sounds fair to me.
     
  7. Neotrotsky
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    Neotrotsky Council to Supreme Soviet

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    One has to wonder if taxing all capital gains at regular rates
    would be a good idea at this time
     
  8. Toro
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    Toro Diamond Member

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    As someone who has spent his entire career in money management, I can attest to that.
     
  9. Truthmatters
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    Oh my hes pro taxes
     
  10. Neotrotsky
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    Neotrotsky Council to Supreme Soviet

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    rhetorical question
     

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