Comments on: How Should Hedge Funds and Private Equity Be Taxed? http://www.peridotcapitalist.com/2007/07/how-should-hedge-funds-and-private.html Chad Brand's stock market and investing blog Fri, 12 Mar 2010 20:02:35 -0700 http://wordpress.org/?v=2.8.5 hourly 1 By: stocksshock http://www.peridotcapitalist.com/2007/07/how-should-hedge-funds-and-private.html/comment-page-1#comment-817 stocksshock Fri, 08 Feb 2008 02:29:00 +0000 http://www.peridotcapitalist.com/?p=467#comment-817 <a HREF="http://stocksunlimited1.blogspot.com" REL="nofollow">Be alerted to the Hottest Stock Picks!</a><br/><a HREF="cashstocks.angelfire.com" REL="nofollow">Join Emerging Growth Alert Newsletter</a><br/><br/>By joining the team at Emerging Growth Alert you will be in position to <br/><a HREF="http://stocks.freetzi.com" REL="nofollow">receive stock alerts profiling stocks</a> about to move or already in motion. Our <a HREF="http://financialtrading.byethehost13.com" REL="nofollow">alerts</a> are sent in time for you to research, investigate and make a decision about whether this <br/><a HREF="http://www.zendurl.com/cashing" REL="nofollow">opportunity</a> is right for you.You will not be bombarded with junk mail. There is ABSOLUTELY NO OBLIGATION, and the service is entirely <br/><a HREF="http://financialtrading.byethehost13.com" REL="nofollow">FREE.</a><br/><br/>http://stocks.freetzi.com<br/>http://www.zendurl.com/cashing Be alerted to the Hottest Stock Picks!
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]]> By: shtove http://www.peridotcapitalist.com/2007/07/how-should-hedge-funds-and-private.html/comment-page-1#comment-592 shtove Tue, 03 Jul 2007 17:36:00 +0000 http://www.peridotcapitalist.com/?p=467#comment-592 It's not a tough issue at all - no risk, then tax as income, not capital gain. It shouldn't even be an issue for new legislation - just apply the existing rules. It’s not a tough issue at all – no risk, then tax as income, not capital gain. It shouldn’t even be an issue for new legislation – just apply the existing rules.

]]> By: sagacious http://www.peridotcapitalist.com/2007/07/how-should-hedge-funds-and-private.html/comment-page-1#comment-591 sagacious Mon, 02 Jul 2007 21:44:00 +0000 http://www.peridotcapitalist.com/?p=467#comment-591 From what I can tell, the bigger issue is that corporations are taxed 35% on capital gains while LLCs are taxed at 15%, yet these partnerships operate almost identically to corporations, down to partnership interests trading just like stock certificates. In other words, otherwise identical operations but with the primary difference really coming down to how they're shown on paper. <br/><br/>Forget raising LLC tax rates. I say corporate capital gains tax rates should be lower. From what I can tell, the bigger issue is that corporations are taxed 35% on capital gains while LLCs are taxed at 15%, yet these partnerships operate almost identically to corporations, down to partnership interests trading just like stock certificates. In other words, otherwise identical operations but with the primary difference really coming down to how they’re shown on paper.

Forget raising LLC tax rates. I say corporate capital gains tax rates should be lower.

]]> By: mOOm http://www.peridotcapitalist.com/2007/07/how-should-hedge-funds-and-private.html/comment-page-1#comment-590 mOOm Mon, 02 Jul 2007 15:31:00 +0000 http://www.peridotcapitalist.com/?p=467#comment-590 I think the argument is that the incentive/performance fees are of the nature of ordinary income and should be taxed at regular rates. I didn't think congress was making this argument regarding profits on the manager's own investments in the fund. This does make sense to me. The main argument in favor of lower long-term CGT in general in my opinion is compensation for inflation as the nominal gain is taxed. For example Australia used to index the gains but now has switched to half the normal income tax rate instead. Also when the capital gain results from reinvestment of profits in the business CGT amounts to double taxation like in the case of dividends in the US. But even Australia double taxes this (it doesn't double tax dividends derived from profits earned in Aus). I think the argument is that the incentive/performance fees are of the nature of ordinary income and should be taxed at regular rates. I didn’t think congress was making this argument regarding profits on the manager’s own investments in the fund. This does make sense to me. The main argument in favor of lower long-term CGT in general in my opinion is compensation for inflation as the nominal gain is taxed. For example Australia used to index the gains but now has switched to half the normal income tax rate instead. Also when the capital gain results from reinvestment of profits in the business CGT amounts to double taxation like in the case of dividends in the US. But even Australia double taxes this (it doesn’t double tax dividends derived from profits earned in Aus).

]]> By: Anonymous http://www.peridotcapitalist.com/2007/07/how-should-hedge-funds-and-private.html/comment-page-1#comment-589 Anonymous Mon, 02 Jul 2007 13:35:00 +0000 http://www.peridotcapitalist.com/?p=467#comment-589 Way too logical to ever get done. Way too logical to ever get done.

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