{"id":16102,"date":"2010-06-08T07:54:01","date_gmt":"2010-06-08T11:54:01","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=16102"},"modified":"2010-06-08T08:00:45","modified_gmt":"2010-06-08T12:00:45","slug":"house-bill-on-carried-interests-may-affect-hedge-funds","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/06\/2010\/house-bill-on-carried-interests-may-affect-hedge-funds.html","title":{"rendered":"House Bill On Carried Interests May Affect Hedge Funds"},"content":{"rendered":"

\"\"<\/a>New York (HedgeCo.net) – The House of Representatives recently passed legislation pushing back the effective date of a proposed tax increase on hedge fund managers which would prevent a portion of their income realized from carried interests in investment partnerships from being characterized as capital gain.<\/p>\n

This provision would increase the effective tax rate for fund managers with respect to the portion of their compensation they receive as a “carried interest”.\u00a0 An earlier version of the bill had a Jan. 1, 2010 effective date which has now been moved to Jan. 1, 2011.<\/p>\n

“As one of the revenue offsets for these extensions, the bill would generally prevent a portion of any income with respect to carried interests in investment partnerships held by service providers to such partnerships (\u201cinvestment service partnership interests\u201d) from being characterized as capital gains.” Federal income taxation specialist at RK&O Kenneth E. Werner, said, “Instead, such portion (50% for tax years beginning before January 1, 2013 and 75% thereafter) would be treated as ordinary income.”<\/p>\n

The term \u2018investment services partnership interest\u2019 means any interest in a partnership which is held by any person if it was reasonably expected that such person (or any person related to such person) would provide a substantial quantity of any services in the nature of advising as to investing in, purchasing, or selling any specified asset, managing, acquiring, or disposing of any specified asset, arranging financing with respect to acquiring specified assets, or any activities in support of the foregoing.<\/p>\n

The term \u201cspecified asset\u201d means securities, real estate held for rental or investment, partnership interests, commodities, or options or derivative contracts with respect to any of the foregoing.<\/p>\n

Alex Akesson
\nEditor for HedgeCo.net<\/a>
\nalex@hedgeco.net<\/a>
\nHedgeCo.Net<\/a> is a premier hedge fund database<\/a> and community for qualified and accredited investors only. Membership in HedgeCo.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.net) – The House of Representatives recently passed legislation pushing back the effective date of a proposed tax increase on hedge fund managers which would prevent a portion of their income realized from carried interests in investment partnerships […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,3],"tags":[],"class_list":["post-16102","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-regulation","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/16102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=16102"}],"version-history":[{"count":4,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/16102\/revisions"}],"predecessor-version":[{"id":16104,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/16102\/revisions\/16104"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=16102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=16102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=16102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}