Carried interest is pay for performance, and like management fees, should be taxed by New York City, concludes a report from the Fiscal Policy Institute.
The 4 percent unincorporated business tax (UBT), which all unicorporated companies or professionals conducting business in whole or in part in New York City must pay, currently amounts to a 2 percent rate for management fee income, due to a tax credit passed last year coupled with federal tax deductions.
