I am not a tax accountant and I hope one on FR can give a better answer, but large corporations can do it for years I believe. Some FREEPER please give a better answer.
Here is the math.
In the bad old days, fund managers could defer income taxes by re-investing their clients fees into their fund. When the fund manager withdrew his investment, he’d have to pay the original tax ( and of course capital
gains on any gains.
It’s kinda like a 401(k) but for fund managers
Around 2009, congress said closed this deferral strategy and required all
deferred funds to be withdrawn by 2017.
Soros the Fund Manager simply has been doing this for a very very long time so the capital gains are huge.
it’s as of congress outlawed 401(k)s and required everyone to pay taxes on the gains ( even if you don’t cash out )
Not.