1.   A statement of the agreed profit sharing ratio as agreed between the partners at the outset in relation to the ordinary income of the firm.

2.   And it would be treated as ordinary income, in the same manner as a pension or annuity.

3.   And it would broaden the gap between the taxation of capital gains and ordinary income, a bias for which there is little economic justification.

4.   And the money you withdraw from the trust during your lifetime may be taxable as ordinary income, capital gains or both.

5.   And variable annuities convert what would be capital gains in a mutual fund into ordinary income, which is taxed at higher rates.

6.   Any losses beyond that can be carried into future years to offset capital gains, then ordinary income.

7.   As before, gains on assets held for less than a year are taxed as ordinary income.

8.   As with any other Treasury bond, the twice-a-year interest payments would constitute ordinary income.

9.   At that point, the accumulated interest is taxed as ordinary income.

10.   Assets held less than one year will continue to be taxed as ordinary income.