Carried Interest Tax
The majority of the commercial real estate community is vehemently opposed to ongoing proposals to treat carried interest (see Mitt Romney's tax return) as ordinary income. Increasing the tax rate on carried interest from 15% to the applicable marginal rate will create significant challenges for hedge funds, pe shops, and yes, real estate investors.
For those of you on the investment side of the industry:
- How much does this worry you?
- How significantly do you think your comp will be affected?
For those of you looking to move into real estate investing:
- Would this tax increase deter you from pursing a career in RE investment?
And for everyone (this could get interesting)
- IS CARRIED INTEREST ORDINARY INCOME OR NOT?