Promote / Carried Interest and Taxes

Random question for everyone - for most of my career I’ve been on the straight salary and annual bonus comp plan, but I’ve finally got a handful of deal promotes hitting this year. My company wires the full amount before any taxes are taken out so we’re ultimately responsible for settling up with the government at year end when filing tax returns.

With this being the first time any sizable promotes have hit, I’m trying to research if there’s any investments I could make which could result in substantial tax write offs. Apologize on the elementary nature of the question , but I’ve honestly never really dug into anything like this.

Any thoughts or input would be greatly appreciated!

3 Comments
 

You should still have time left on OZ investing. You could invest your gains into an OZ deal or buy land in an OZ area but you’d be locked out for 10 years from that capital. To nice thing is you wouldn’t pay tax on that gain when you exit.

 

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