I’m not an accountant or tax lawyer but here you go: https://www.investopedia.com/articles/investing/102515/carried-interest-loophole-americas-tax-code.asp htt

I’m not an accountant or tax lawyer but here you go: https://www.investopedia.com/articles/investing/102515/carried-interest-loophole-americas-tax-code.asp https://www.investopedia.com/articles/investing/102515/carri... Carried interest is a share of a private equity or fund's profits that serve as compensation for fund managers. Because carried interest is considered a return on investment, it is taxed at a capital gains rate, and not an income rate. Critics argue that this is a tax loophole since portfolio managers get paid from that money, which is not taxed as income. Advocates of carried interest argue that it incentivizes the management of companies and funds to profitability.