| HBS Case Collection
(Revised August 2010)
The Carried Interest
Makes the point that general partners and others frequently contract to receive a share of any profits that the venture they manage generates. This practice raises the question of whether the value of this contract right should be taxed when it is received or only when the profit is eventually earned. Raises the question of whether the tax law and business practice should be coincident on the topic of certainty. Implicit is the question of whether there is some minimum amount of certainty required before we should inflict the cash flow burden of paying tax.
Keywords: Venture Capital;
Business or Company Management;
Partners and Partnerships;
Reiling, Henry B. "The Carried Interest." Harvard Business School Case 293-043, September 1992. (Revised August 2010.)