Hedge Funds Still Can't Figure Out a Way to Avoid a $25 Billion Tax Bill
- Loophole for fund managers slams shut at the end of 2017
- Experts searched but ‘no one has come up with magic bullet’
sheet of a calendar with the number of days close-up
Source: Getty ImagesThis article is for subscribers only.
The tax man cometh for some of the richest money managers in the U.S. They’ve had eight years to dream up a dodge. So far, no luck.
The deadline they face is Dec. 31, 2017. That’s when a loophole closes, and hedge-fund managers will have to pay taxes on performance fees parked offshore. Some have brought the money home, taking the hit, but others have waited to benefit from the magic of tax-deferred compounding. And in the hope that clever advisers would come up with a workaround for a total that some estimates put at $100 billion -- at least.