Carried Interest Tax

Posted June 3, 2010

In Columbus, Commercial, investing, Los Angeles

Another topic of concern that has passed the house and awaiting a vote in the senate. Given the majority in the senate, it will also likely pass there too.

Real Estate Groups Warn That Carried Interest Tax Could Harm Recovery – CoStar Group

“Real estate is a long-term, risk-based investment which is regularly structured as a partnership, and therefore often involves a carried interest,” noted BOMA International Chair James A. Peck, who is also senior director of asset services for CB Richard Ellis. “The passage of the bill by the Senate would result in fewer jobs, fewer economic development projects, fewer small investors lifting our economy into recovery and less tax income at the local level.”

The carried-interest measure is problematic because almost every piece of real estate is owned in an LLC or an LP, Camp said. While successful investments typically pay a premium to the investment manager as a reward for taking the calculated financial risk, “this law basically eliminates the capital gains treatment on investment income and treats it as ordinary income,” Camp said.

Commercial realtor

Commercial real estate with a focus on out-of-state investment property for my Southern California investors. My clients are Southern California local buyers looking for a return far better than what is available around here and that generally means out-of-state. We have expert property management, legal, and contracting services available.