Finance, Real Estate Groups Call for Partnership Tax Case Relook

Real estate and finance partnerships with potentially millions of members, could face heightened tax burdens if a US Tax Court ruling is not reversed, two interest groups have told the First Circuit.

In amicus briefs backing the private equity firm Denham Capital Management GP LLC, a consortium of real estate industry leaders and the Managed Funds Association said Denham’s partners should be exempt from Medicare and Social Security contributions.

Denham seeks to overturn a US Tax Court decision last year that its limited partners were not exempt from self-employment taxes based on a “functional analysis” of their roles with the ...