State Taxation of Carried Interests



Alysse McLoughlin wrote this bylined article to discuss how carried interest for investment fund management partner profits is taxed at the state level. Noting the favorable federal tax treatment of carried interest, Ms. McLoughlin described how legislators in several northeastern states want greater curbs on it at the state level. “None of these four states, however, wants to act in isolation,” she continued, making it “very unlikely that any of these state tax, carried interest bills will pass.”