Tax Reclassification of Investment Management Income (Carried Interest)
This Act amends the tax treatment of income from investment services partnership interests (carried interest). Net capital gains from such interests will be treated as ordinary income rather than capital gains. The Act also includes this income in the determination of net earnings from self-employment and introduces a penalty for underpayments due to the avoidance of these new rules.
Key points
Income Reclassification: Net capital gain from investment services partnership interests will be treated as ordinary income.
Self-Employment Tax: Investment services partnership income or loss will be taken into account in determining net earnings from self-employment.
Tax Penalties: A 40% penalty is imposed on the portion of any underpayment attributable to the avoidance of these new provisions (replacing the standard 20%).
Status:
Expired
Record your position for audit.
Why does your vote on bills matter?
It creates raw, undeniable proof. Civic Will provides the permanent data to verify the Government's loyalty towards its citizens
(explained here).
Start recording it now.