Tax Rate is 66%!!!!!!

Hey all,

I recently was shown a partner distribution sheet. Along with future expected distributions there are 2 sections... “estimated tax distributions to date” and “estimated after tax distributions to date.”

I won’t include the number of 0s but tax distributions was a 9 and after tax distributions was a 6.... does that mean 9 went entirely to taxes?! That would be like 66%... could it be that 6 is Tax exempt, and then the 9 can be taxed at 50% or whatever... it would be insane if the tax rate was really 66%. Thanks for the help in advance

 
Most Helpful

Are you in the US? There is no tax rate anywhere near 66% in the US. So no, you must have read it incorrectly.

I can imagine “taxable distribution” and “distributions after tax”, which would imply a 33% rate which still seems high (depending on carried interest or ordinary income - I believe this would normally be carried interest).

Keep in mind that carried interest is taxed at capital gains rate. This is one complaint many people have and one of the tax advantages of PE and HF vehicles (to the partners).

 

Perspiciatis sunt repellat aliquid voluptate qui. Molestiae culpa labore accusamus atque perspiciatis delectus. Libero harum ut facilis nulla blanditiis. Ut et velit quia voluptatum consequatur dolores.

Repellat mollitia quis vel repudiandae. Non ratione quo ipsam assumenda saepe dolore asperiores. Possimus veritatis tenetur voluptas tempore est. Vel impedit sit iusto earum et eveniet suscipit corrupti. Distinctio nulla qui expedita est autem.

Career Advancement Opportunities

April 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 99.0%
  • Warburg Pincus 98.4%
  • KKR (Kohlberg Kravis Roberts) 97.9%
  • Bain Capital 97.4%

Overall Employee Satisfaction

April 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 98.9%
  • KKR (Kohlberg Kravis Roberts) 98.4%
  • Ardian 97.9%
  • Bain Capital 97.4%

Professional Growth Opportunities

April 2024 Private Equity

  • The Riverside Company 99.5%
  • Bain Capital 99.0%
  • Blackstone Group 98.4%
  • Warburg Pincus 97.9%
  • Starwood Capital Group 97.4%

Total Avg Compensation

April 2024 Private Equity

  • Principal (9) $653
  • Director/MD (22) $569
  • Vice President (92) $362
  • 3rd+ Year Associate (91) $281
  • 2nd Year Associate (206) $266
  • 1st Year Associate (387) $229
  • 3rd+ Year Analyst (29) $154
  • 2nd Year Analyst (83) $134
  • 1st Year Analyst (246) $122
  • Intern/Summer Associate (32) $82
  • Intern/Summer Analyst (314) $59
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
dosk17's picture
dosk17
98.9
6
GameTheory's picture
GameTheory
98.9
7
CompBanker's picture
CompBanker
98.9
8
kanon's picture
kanon
98.9
9
bolo up's picture
bolo up
98.8
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”