An additional perk of a private equity firm is that the profits for both CEOs and the partners are taxed at the 15% capital gains rate rather than the 35% rate they would suffer if the income was received as income.

Question

Quizplus · Accepted Answer

This statement is true. Private equity firm profits for both CEOs and partners are taxed at the lower 15% capital gains rate, which is a benefit compared to the higher 35% rate for regular income.

An Additional Perk of a Private Equity Firm Is That