Media Coverage
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
10.09.18
Connecticut governor Daniel Malloy earlier this year signed a tax law that allows earners of carried interest profits a way to reduce the tax rate applied to those earnings. According to Bloomberg, the “hidden perk” is good news for owners of “pass-through” businesses such as partnerships like hedge and private equity funds, as it offsets the state’s new $10,000 SALT deduction limit.
Pillsbury Tax special counsel Ivan Mitev tells Bloomberg that this alternative method of calculating the carried interest tax rate ultimately allows fund managers to reduce the long-term capital gains rate of 20 percent by about 1.4 percentage points. But, Mitev explains, the method becomes more complicated for funds that are single-member LLCs and for managers who work in Connecticut but live in New York.
Read the full analysis of the Connecticut SALT bypass on Bloomberg.