Looks like the carried interest loophole survives yet again via /r/wallstreetbets #stocks #wallstreetbets #investing


Looks like the carried interest loophole survives yet again

little background about this:

applies to hedge funds and private equities.

We have general partners and limited partners.

limited partners provide the funding and general partners invest the limited partners money. When the general partners go to take profits, they give the limited partners their money back and they keep 20% of the profits and the 80% goes back to limited partners.

The issue arises when the general partners only have to pay long term capital gains tax (~20%) when they're not the one's investing their money. People want these guys to be taxed at regular income tax.

So yet again, this loophole has continued to survive as expected

Submitted August 06, 2022 at 06:30PM by Guysmarket
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