Carried Interest Rules for Investment Funds: New Final Regs, Planning Opportunities, and Pitfalls
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will examine the three-year holding period requirement for carried interests under IRC 1061 and discuss structuring techniques that can preserve long term capital gains treatment for private equity and hedge fund managers, notwithstanding the new tax reform rules. The panel discussion will include final regulations released January 7, 2021, which clarify certain points left open to interpretation by the 2017 tax reform law.
- Carried interests before and after tax reform: new IRC 1061
- Impact of new regulations and current status
- Tax planning opportunities
- Contributing capital in connection with the issuance of carried interests
- Transfer of carried interests to unrelated parties
- Distributing appreciated assets to holders of carried interests
- Special allocations
- Qualified dividends and 1231 property
The panel will review these and other critical issues:
- What is the scope of IRC 1061?
- What are some alternative approaches that tax counsel should consider to preserve long term capital gains treatment?
- How does IRC 1061 impact qualified dividends and gains from the sale of property taxed under IRS 1231, and how might that impact tax planning under IRC 1061?
Brian D. Huber
Gunderson Dettmer Stough Villeneuve Franklin & Hachigian
Mr. Huber supports venture capital and growth equity fund managers on all aspects of the fund lifecycle. He has... | Read More
Mr. Huber supports venture capital and growth equity fund managers on all aspects of the fund lifecycle. He has significant experience advising fund managers on issues related to fundraising, GP management, and economics, including the tax and structuring aspects of fund formations and investments globally. He helps clients navigate complex matters in the evolving legal and regulatory landscape, such as the impact of recent tax reform on investment and organizational decision-making. He also has significant experience advising fund managers and investors in connection with secondary purchases and sales of fund interests.Close
Mr. Naylor is a member of the firm’s Private Funds Group. He works with private investment fund sponsors and... | Read More
Mr. Naylor is a member of the firm’s Private Funds Group. He works with private investment fund sponsors and their investors in all tax aspects of structuring venture capital, private equity, real estate and hedge funds. Mr. Naylor also advises U.S. and non-U.S. institutional investors, governmental investors, pension trusts and other tax-exempt organizations in their investments in private funds and joint ventures. In addition, he works with his fund sponsor clients in designing and implementing carried interest plans and other compensation arrangements for the general partners of private funds.Close