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re: Hedge Fund Tax Rate

Posted on 4/27/12 at 3:45 pm to
Posted by GregYoureMyBoyBlue
Member since Apr 2011
2963 posts
Posted on 4/27/12 at 3:45 pm to
quote:

Hedge Funds too. They are under the same loophole umbrella that PE principals use as well whereas large amounts of their compensation are treated as capital gains and not ordinary income. It's a joke.


I agree that the principle itself is "unfair". But they'd be idiots not to take advantage of the opportunity. PE firms especially have the excuse because what they're doing has around 5 year time horizon anyway and should be considered LT capital gains. I didn't realize that this was the case for hedge funds though
Posted by RemouladeSawce
Uranus
Member since Sep 2008
13989 posts
Posted on 4/27/12 at 3:50 pm to
quote:

I agree that the principle itself is "unfair". But they'd be idiots not to take advantage of the opportunity.
I don't blame them at all. I would do the same if I were a GP. There is also validity with the capital gains argument due to the LT time horizon required of certain PE firms before exit and HFs with strategies that are LT-oriented.

CPAs who work with these vehicles please chime in.
This post was edited on 4/27/12 at 3:58 pm
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