A ruling against Sun Capital Partners in a case regarding pension fund liability has placed the tax treatment of carried interest at risk. Carried interest is the profit made a by a private equity advisor from investing in companies. This profit is taxed under the capital gains rate at 20%, instead of the income rate of up to 39.6%. Part of the rationale for the favorable tax rate is that it is from investing and therefore cannot result from “trade or business.” In the pension case, a court rejected this characterization of Sun Capital Partners’ relationship with the pension fund of a company it bought-out, because Sun Capital was actively involved in the bought-out firm’s management and operation. The Obama Administration, which has been seeking to tax carried interest at an income rate, may find this is the legal justification required to direct the I.R.S. to issue new rules.
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:
Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:
George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives. He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.
DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.