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Jan 15, 2020
2:29
:31
pm
BYU71
All-American
One other idea for the very, very RICH. Let them set up their foundations
and get the tax benefit from them. However, the government should be in charge of where and what the foundation money is spent on.
Same with the "endowments' at all the big time liberal colleges.
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BYU71
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BYU71
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Apr 23, 2001
Last login
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Messages
Author
Time
For those of you who understand "carried interest" would you consider it a
BYU71
1/15/20 2:22pm
I would say it is a tax gimmick. I don't think getting compensated for actual
Coach's Dad
1/15/20 2:28pm
Here’s a good explanation
cougarfann888
1/15/20 2:29pm
Wish that was available to all of us. I give investment advice for a 1% fee.
BYU71
1/15/20 2:33pm
That's because they are "taking a risk." I'm not sure why their risk deserves
Archaea
1/15/20 3:04pm
One other idea for the very, very RICH. Let them set up their foundations
BYU71
1/15/20 2:29pm
if the government controls how the money is used then it works exactly like a tax. No one would put money into a
HarlemCoug
1/15/20 2:32pm
Exactly, but we are letting the rich do something we can't.
BYU71
1/15/20 2:36pm
They also appear to be providing a service which we can't provide
Indy Coug
1/15/20 2:36pm
they are doing so much good. they are better at allocating capital. we should stay out of their way. Sure, there are
HarlemCoug
1/15/20 2:40pm
Carried interest is different from ordinary income in that in order to earn CI you have to put up capital. You
HarlemCoug
1/15/20 2:30pm
I agree they should be taxed differently. If what you say is correct, why
BYU71
1/15/20 2:35pm
carried interest is different in that the Principal gets some of the capital gains from other people's investment. If
HarlemCoug
1/15/20 2:39pm
Why should someone who is selling his knowledge to the client get capital gain treatment? The manager is risking no
CDV
1/15/20 2:46pm
Do the fund managers actually put up their money or are they
Archaea
1/15/20 3:06pm
Are they technically borrowing their clients funds?
Superman21
1/15/20 3:09pm
I imagine that it happens but raising capital when you don't have any "skin in the game" would be very unusual.
HarlemCoug
1/15/20 3:16pm
I have seen both scenarios but couldn't understand how the manager without
Archaea
1/15/20 3:22pm
Except your "skin the game" would get the benefits of your money management
Coach's Dad
1/15/20 3:27pm
yes - they want Principals to pay ordinary income rates rather than capital gains rates.
HarlemCoug
1/15/20 3:42pm
Is that true in all cases that they put up capital? I thought regular investment
Coach's Dad
1/15/20 2:43pm
Besides, I think the investment managers will get the beneficial tax treatment
Coach's Dad
1/15/20 2:45pm
I don't think regular invesmtent advisors get "carried interest".
BYU71
1/15/20 2:57pm
I audited hedge funds as my 1st job out of BYU. I saw a ton of structures. In every case the GP had his own money in
HarlemCoug
1/15/20 3:19pm
Does the manager get a higher percentage than the amount of money
Archaea
1/15/20 3:23pm
It's most common for people to put up less than 20% of the fund's capital in the early years... But, over time, since
HarlemCoug
1/15/20 3:40pm
Whose money is at risk?
Busiturtle
1/15/20 3:32pm
I'm not an expert by any means, but it seems more like an incentive for taking on higher levels of risk
Indy Coug
1/15/20 2:31pm
Agreed. Some very limited thinking doesn't understand risk/reward and
BYU71
1/15/20 2:38pm
Wait a sec. every sales job in the world has that same risk but gets no carried interest special exception. It is all
CDV
1/15/20 2:42pm
<< Deleted >>
HarlemCoug
1/15/20 2:43pm
If you consult for the 2 and 20 and structure it, you could get that
Archaea
1/15/20 3:08pm
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