Leon Black Could Cash in on New Tax Law

The video discusses the differences between pass-through entities and corporations, focusing on taxation. It explains how the new tax bill reduced corporate tax rates, prompting some publicly traded partnerships to consider converting to corporations. This conversion could simplify tax processes and attract mutual fund investments, despite its complexity.

What is a key difference between pass-through entities and corporations in terms of taxation?

• Pass-through entities are taxed at corporate rates.

• Pass-through entities are taxed at individual rates.

• Corporations are taxed at individual rates.

• Corporations are not taxed at all.

What was the change in the corporate tax rate due to the new tax bill?

• It increased from 21% to 35%.

• It decreased from 35% to 21%.

• It remained the same at 35%.

• It increased from 21% to 40%.

Why might a publicly traded partnership consider converting to a corporation?

• To decrease their public visibility.

• To increase the complexity of tax filings.

• To benefit from lower corporate tax rates.

• To avoid paying any taxes.

What is a K1 form, and why is it significant for investors in partnerships?

• A form that simplifies tax filing for corporations.

• A form that is sent to investors in partnerships, complicating tax filing.

• A form that eliminates the need for tax filing.

• A form that is only used by mutual funds.

How could converting to a corporation benefit Apollo in terms of investment opportunities?

• By making it harder to include in indexes.

• By increasing the complexity of tax filings.

• By reducing the number of shareholders.

• By simplifying tax processes and attracting mutual fund investments.