Vedder Thinking | Articles Matthew P. Larvick Authors Article for Bloomberg BNA Real Estate Journal
November 4, 2016
Matthew P. Larvick, a Shareholder focusing on federal income taxation and an adjunct professor in the IIT Chicago-Kent College of Law Graduate Tax Program, authored an article that appeared in the September 7, 2016 issue of the Bloomberg BNA Real Estate Journal.
The article, titled “Disguised Payments for Services,” examines proposed tax rules that can convert partnership allocations of capital gain into higher-taxed ordinary income. The rules are particularly relevant to “fee waiver” structures utilized by many private equity funds. These rules can also apply to other equity compensation arrangements utilized by partnerships, including real estate funds.
Mr. Larvick notes, “As Shakespeare once wrote, a rose by any other name would smell as sweet. As the proposed guidance illustrates, however, a fee by any other name may smell quite foul.”