News & Analysis

Building tax flexibility into carry

An audience poll at the CFOs & COOs Forum voted on whether GPs should tactically invest to avoid the three-year carried interest rule.

-

The audience at a plenary session of the CFOs & COOs Forum 2020 in New York indicated they are perfectly fine with strategically avoiding the new (2017) rule that would tax carried interest at ordinary income rates for investments with holding periods shorter than three years – as long as it there’s no downside to investors. But how can one ensure that?

Check out this, and this, for more about strategies GPs are pursuing.