2025-12-27 11:58:38

Fund managers and dealmakers are increasingly leveraging South Dakota trust structures to optimize carried interest taxation. By establishing trusts in this jurisdiction, asset managers can potentially reduce or defer tax obligations on carried interest earnings. This strategy reflects the growing sophistication in fund structuring and highlights how different U.S. states compete through favorable legal frameworks. For those managing crypto funds or venture portfolios, understanding such jurisdictional advantages becomes crucial for maximizing after-tax returns.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

12 Likes

Reward
12
6
Repost
Share

Comment

0/400

BanklessAtHeart

· 2025-12-30 09:52

South Dakota's approach is truly brilliant—both trust and tax deferral. Asset managers' minds are incredible... Crypto funds have been doing this for a long time, and the tax game never ends.

View OriginalReply0

GateUser-6bc33122

· 2025-12-30 09:42

South Dakota Trust's gameplay... I hear many large funds are using it, but the more tax loopholes you exploit, the greater the risk. Can it really be sustainable in the long run?

View OriginalReply0

LiquidityWizard

· 2025-12-27 12:12

South Dakota Trust is at it again, scamming investors. This trick has been played out in the crypto circle for a long time.

View OriginalReply0

MEVHunterX

· 2025-12-27 12:10

South Dakota Trusts have been played out for a long time. Now even crypto fund managers are using them, truly pushing tax optimization to new heights.

View OriginalReply0

GateUser-cff9c776

· 2025-12-27 12:08

South Dakota Trust Tax Avoidance? Basically, it's just hiding money somewhere else. It sounds sophisticated, but essentially it's the same old trick. From the supply and demand curve, the aesthetic value of this thing is seriously overestimated by the market. Another wave of "legal tax avoidance" narratives, perfectly illustrating the Schrödinger's moral dilemma under capitalism. Crypto fund managers play like this, no wonder the SEC is watching them every day. South Dakota has really become the new Cayman Islands. Honestly, it's a bit ironic given the original intention of Web3 decentralization.

View OriginalReply0

InscriptionGriller