Final Carried Interest Regulations: Impact on Fund Managers and Tax Planning

Note: CLE credit is not offered on this program

A live 110-minute CPE webinar with interactive Q&A

Tuesday, December 21, 2021

1:00pm-2:50pm EST, 10:00am-11:50am PST

(Alert: Event date has changed from 10/19/2021!)

or call 1-800-926-7926

This course will provide fund managers and advisers with a practical guide to the challenges and planning opportunities found in the final regulations and the proposed tax changes to the carried interest rules.


The practice of preferential tax treatment of an applicable partnership interest or carried interest granted to hedge fund managers, private equity, and real estate funds present tax reporting and planning challenges to partnerships and their tax advisers.

Carried interest refers to the practice when partnerships grant profits interest to general partners for their fund management services, sometimes only if the fund's profit margin exceeds a specified rate of return applicable to limited partners. Current law allows the general partner recipient to treat this payment as long-term capital gain if the underlying assets meet the required holding period and provide tax benefits. The grant itself is not subject to tax upon either grant or vesting.

A few of the significant changes made by the final regulations issued in January 2021 include modifications to the capital interest exception, the look-through rule for applicable partnership interests (APIs), and transfers of APIs to related parties.

Listen as our experienced panel provides practical guidance on the recent regulations, the tax reporting, and planning challenges in the new carried interest rules and impending changes to Section 1061.



  1. Background
  2. Carried interest treatment in the final regulations
    1. APIs defined
    2. Capital interest exception
    3. The three-year holding period
    4. Capital interests acquired with loan proceeds
    5. Look-through rules
    6. Anti-avoidance rules
    7. Related party transfers
    8. Other provisions
  3. Tax reporting challenges involving carried interests
  4. Potential federal and state changes


The panel will review these and other relevant topics:

  • Notable changes made by the final regulations issued January 2021
  • 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 invested capital rather than performing services)
  • Effective dates and potential early reliance on the proposed regulations
  • Potential differences between state and federal tax treatment of carried interest


Gonano, Dave
Dave Gonano, CPA, MBA

Director, Tax
Cohen & Company

Mr. Gonano has spent his entire career focused on taxation of the alternative investment industry. He works with...  |  Read More

Velotta, Rob
Robert Velotta, CPA, MT

Partner, Tax
Cohen & Company

Mr. Velotta is leader of the firm’s RICs, REITS and financial instruments tax team. He assists clients with RIC...  |  Read More

Attend on December 21

CPE credit processing is available for an additional fee of $39.
CPE processing must be ordered prior to the event. See NASBA details.

Cannot Attend December 21?

CPE credit is not available on downloads.