Any ideas to reduce or eliminate the state income tax on investment income? I have a number of hedgefunds and private equity investments which (some years) generate over 100k a year mostly as interest or short term capital gains. I live in New York, and am subject to the AMT, so it's like 7-8% extra that I pay out of the gains. I'm not interested in changing the underlying investments. Is there a way to set up a structure - say a trust or company incorporated in a tax-free state, (where I wouldn't have to pay 1% of the asset value per year in fees to set up and maintain the structure - that would defeat the purpose) that would serve to shelter or defer the investments from state income tax? |


