The carried interest issue can be looked at differently
Reader comment on: The NYT on Carried Interest
Submitted by Lyle (United States), Apr 5, 2010 23:11
You could say that if you primarily manage money for other investors you get taxed on all results as ordinary income. The question I have not seen answered is did the fund managers put any money in or were they given the interest as a part of their pay. If they were given the interest directly as a part of pay it should be ordinary interest. If they had to invest in the fund then perhaps the CG treatment might be ok. (The money involved should have left the fund and been subject to income tax for the CG treatment)
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