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Carried Interest Regulations: Impact on Fund Managers, Tax Planning Strategies, Exceptions, Anti-Abuse Rules

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Tuesday, March 26, 2024

Recorded event now available

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This course will provide fund managers and their advisers with a practical guide to the challenges and planning opportunities found in the carried interest regulations.


IRC Section 1061 passed as part of the Tax Cuts and Jobs Act (TCJA) and related regulations made fundamental changes to the tax treatment of carried interest granted to managers of hedge funds, private equity, and real estate funds and present tax reporting and planning challenges to partnerships and their tax advisers.

Carried interest refers to the practice of granting profits interests to general partners and others for their fund management services The grant of profits interest is, generally, not subject to tax upon either grant or vesting.

Prior to the passage of TCJA in 2017, the recipients of carried interest were able to treat their share of allocated capital gains generated by the funds as long-term capital gain to the extent the assets generating the gain were held for greater than one year.

IRC Section 1061 passed as part of the TCJA and related regulations did not eliminate the carried interest preference entirely but made several fundamental changes. Section 1061 regulations provide extensive guidance on how the carried interest rules should be applied while still leaving a number of issues unresolved.

Listen as our experienced panel provides practical guidance on the carried interest regulations and the tax reporting and planning challenges contained in these rules.



  1. Background
  2. Carried interest treatment
    1. Exceptions
    2. The three-year holding period
    3. Waivers and deferrals
    4. Look-through rules
    5. Anti-avoidance rules
    6. Other provisions
  3. Tax reporting challenges involving carried interests
  4. Differences between federal and state treatment of carried interests


The panel will discuss these and other relevant topics:

  • General treatment of carried interest holders under the regulations
  • Exceptions to this general treatment, such as where a carried interest holder also invests capital in their fund
  • Transfers of carried interest--in particular, gain recognition on transfers to related parties
  • Treatment of seed investors and other persons who may indirectly participate in the carried interest (by virtue of invested capital rather than performing services)
  • Potential differences between state and federal tax treatment of carried interest


Kimelfeld, Irina
Irina Kimelfeld

Eisner Advisory Group

Ms. Kimelfeld is a Tax Partner and a member of the Financial Services Group. With over 25 years of experience, she...  |  Read More

Lovett, Brian
Brian T. Lovett, CPA, JD

Withum Smith+Brown

Mr. Lovett has extensive experience serving the tax needs of both public companies and closely-held businesses,...  |  Read More

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