{"id":644,"date":"2012-09-14T09:01:35","date_gmt":"2012-09-14T14:01:35","guid":{"rendered":"http:\/\/www.nw-cpa.com\/?p=644"},"modified":"2012-09-14T09:01:35","modified_gmt":"2012-09-14T14:01:35","slug":"good-for-the-goose-deferred-comp-for-private-equity-fund-managers","status":"publish","type":"post","link":"https:\/\/www.nw-cpa.com\/?p=644","title":{"rendered":"Good for the goose? Deferred Comp for Private Equity Fund Managers"},"content":{"rendered":"
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\u201cAnyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one\u2019s taxes.\u201d<\/em><\/p>\n<\/div>\n

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Alfred Eisenstaedt\/Time & Life Pictures, via Getty Images<\/h6>\n

Learned Hand, the federal appeals court judge.<\/p>\n<\/div>\n<\/div>\n

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\u2014 Judge Learned Hand, 1934<\/p>\n<\/div>\n

Private Equity fund managers use waived management fees to make required contributions to fund a new\u00a0acquisition\u00a0of their funds. This is similar to receiving a partnership interest for services which is clearly taxable. Ultimately, the managers pay the cap gain rate on this investment rather than the ordinary income rate. \u00a0Why doesn’t the IRS challenge this?<\/p>\n

A Private Equity Tax Tactic May Not Be Legal – High & – Low Finance – NYTimes.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cAnyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one\u2019s taxes.\u201d Alfred Eisenstaedt\/Time & Life Pictures, via Getty Images Learned Hand, the federal appeals court judge. \u2014 … Continue reading Good for the goose? Deferred Comp for Private Equity Fund Managers<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[399],"class_list":["post-644","post","type-post","status-publish","format-standard","hentry","category-federal-income-tax","tag-federal-income-tax"],"_links":{"self":[{"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/posts\/644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=644"}],"version-history":[{"count":1,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/posts\/644\/revisions"}],"predecessor-version":[{"id":645,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/posts\/644\/revisions\/645"}],"wp:attachment":[{"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}