O/T: Taxes
- Thread starter CrookedLetta4Eva
- Start date
Open up your on Hedge Fund*
[h=2]Taxation of carried interest[edit][/h]The taxation of carried interest has been an issue since the mid-2000s, particularly as the compensation earned by certain investors increased along with the sizes of private equity funds and hedge funds. Historically, carried interest has been treated as a capital gain for tax purposes in most geographies. The reason for this treatment is that a fund manager would make a substantial commitment of his own capital into the fund and carried interest would represent a portion of the manager's return on that investment. While hedge funds typically trade their investments actively, private equity firms tend to hold their investments for many years. As such, the capital gains from private equity funds typically qualify as long term capital gains, which receive favorable tax treatment in many locales. Critics of this tax treatment seek to disaggregate the returns directly related to the capital contributed by the fund manager from the carried interest allocated from the other investors in the fund to the fund manager.
[h=2]Taxation of carried interest[edit][/h]The taxation of carried interest has been an issue since the mid-2000s, particularly as the compensation earned by certain investors increased along with the sizes of private equity funds and hedge funds. Historically, carried interest has been treated as a capital gain for tax purposes in most geographies. The reason for this treatment is that a fund manager would make a substantial commitment of his own capital into the fund and carried interest would represent a portion of the manager's return on that investment. While hedge funds typically trade their investments actively, private equity firms tend to hold their investments for many years. As such, the capital gains from private equity funds typically qualify as long term capital gains, which receive favorable tax treatment in many locales. Critics of this tax treatment seek to disaggregate the returns directly related to the capital contributed by the fund manager from the carried interest allocated from the other investors in the fund to the fund manager.
A farm loss
Nearly every accountant has a "farm loss". Got a garden? Deduct tractor gas, tiller, hoes(but not boats), seed and fertilizer.
Buy a new lawnmower? Call it a tractor and deduct it.
Got a lot of land that you deer hunt? If you lease it from someone, deduct it. Any money spent on food plots, lime, seed, fertilizer, gas for tractor. Build a shooting house or 5? Deduct the lumber. This is also a way to put half of your cell phone bill on there and deduct it.
Got a pond or lake? If you stock it, deduct it, buy fish feed, deduct it. Build a pier, deduct it.
Very few of these will raise red flags as long as you don't go overboard and will get you up to a couple hundred back.
Nearly every accountant has a "farm loss". Got a garden? Deduct tractor gas, tiller, hoes(but not boats), seed and fertilizer.
Buy a new lawnmower? Call it a tractor and deduct it.
Got a lot of land that you deer hunt? If you lease it from someone, deduct it. Any money spent on food plots, lime, seed, fertilizer, gas for tractor. Build a shooting house or 5? Deduct the lumber. This is also a way to put half of your cell phone bill on there and deduct it.
Got a pond or lake? If you stock it, deduct it, buy fish feed, deduct it. Build a pier, deduct it.
Very few of these will raise red flags as long as you don't go overboard and will get you up to a couple hundred back.
several options:
1. only take jobs that pay in cash.
2. sell mary kay like my ex wife, make $600... but deduct your entire house, car, computer, etc. as business expenses. cash the $10k check.... and hope they don't ever look closely.
3. accept the obama handouts and get you some gold rims.
1. only take jobs that pay in cash.
2. sell mary kay like my ex wife, make $600... but deduct your entire house, car, computer, etc. as business expenses. cash the $10k check.... and hope they don't ever look closely.
3. accept the obama handouts and get you some gold rims.