Carried interest — the performance allocation received by hedge fund and PE managers — is taxed federally at long-term capital gains rates (up to 23.8% including NIIT) if the underlying holding period meets the three-year requirement. Connecticut taxes capital gains as ordinary income, so CT adds up to 6.99% on top of federal. Careful fund structure and allocation timing can minimize the combined burden.

Potentially yes. Connecticut residents who work in New York City or New York State owe NY income tax on NY-source income. If you commute to a Manhattan office, your NY workdays are taxed at NY rates (up to 10.9% state + 3.876% NYC). The CT-NY tax credit partially offsets this, but the interplay requires careful planning — especially for executives with both CT and NY income.

Connecticut and New York both allow pass-through entities (S-corps and partnerships) to pay state income tax at the entity level rather than the owner level. The entity-level payment is deductible for federal purposes, creating an effective federal deduction that bypasses the $10,000 SALT cap. For Greenwich S-corp and partnership owners, the savings can be substantial. We model the benefit for every eligible client.

The federal estate tax exemption is currently over $13M per individual (~$27M per couple) but is scheduled to drop to approximately $7M ($14M per couple) in 2026 when the Tax Cuts and Jobs Act provisions sunset. Clients with estates above the post-2026 exemption have a narrow window to make large gifts tax-free. Strategies include spousal lifetime access trusts (SLATs), irrevocable life insurance trusts (ILITs), and direct gifting programs. We work with your estate attorney to implement before the deadline.