Republican presidential candidate Mitt Romney’s tax rate was a low 13.9 percent in 2010. What lessons can taxpayers learn from this public disclosure? Structure your income like Romney does, reports Gail Liberman of the Palm Beach Daily News, because capital gains are taxed at 15 percent.
How to do this? Gunster tax attorney Martin Press is quoted in this excerpt from the article:
“The sophisticated investor from Palm Beach should consider having in their portfolio private equity,” declares Martin Press, shareholder and tax attorney with Gunster in Fort Lauderdale. Private equity is not traded on a stock exchange.
A special “carried interest” rule applies to private equity traders that allows for a 15 percent tax rate, Press notes. Although Congress sought to repeal this loophole, that effort died.
Read the entire story: Capital gains key component to Romney’s tax strategy
Learn more about the release of Mitt Romney’s tax returns.
