Number: RS22689
Title: Taxation of Hedge Fund and Private Equity Managers
Authors: Mark Jickling and Donald J. Marples, Government and Finance Division 
Abstract: Several bills relating to the hedge fund issue have been introduced to date in the 110th Congress. S. 1624 would require private equity firms organized as publicly traded partnerships to pay corporate income tax. H.R. 2834, H.R. 3996, and H.R. 6275 would make carried interest taxable as ordinary income. H.R. 4351 and H.R. 6049 would include in gross income the portion of carried interest currently deferred offshore in foreign-chartered funds. In addition to summarizing the legislation, this report provides background on hedge funds and private equity and summarizes the tax issues.
Pages: 6
Date: July 8, 2008