Tax
Aug. 4, 2022
The Empire Strikes Back against carried interest
With a shrinking economy and rising inflation, many see the carried interest loophole as an important incentive for small businesses. The Inflation Reduction Act of 2022 is certainly not a done deal and the proposed changes to this loophole could be a sticking point.
Phil Jelsma
Partner and Chair of the Tax Practice Team
Crosbie Gliner Schiffman Southard & Swanson LLC (CGS3)
Email: pjelsma@cgs3.com
Phil is chair of the tax practice team at CGS3. He is recognized as a leading joint venture and tax attorney, with a 30-year background in real estate exchange transactions, syndications, nonprofit corporations and international tax planning.
As part of the Inflation Reduction Act of 2022 – an ambitious bill which aims to reform the tax code, minimize health-care costs and combat climate change – congressional Democrats have moved towards closing the so-called “carried interest loophole” which allows hedge fund managers and private equity executives to access lower capital gains rates on earned income. In a surprise deal, Senate Majority Leader Chuck Schumer and Sen. Joe Manchin recently reached an agreeme...
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