IRS Final Carried Interest Regulations: Significant Tax Rule Changes and Planning Opportunities
Recording of a 90-minute premium CLE/CPE video webinar with Q&A
This CLE/CPE course will guide tax counsel and advisers on the IRS final regulations, the tax treatment of carried interest, and available planning opportunities. The panel will discuss the application of Sec. 1061, modifications to the capital interest exception, applicable partnership interests (API) dispositions, and other significant provisions. The panel will also discuss Sec. 1231 property, implications of related party transactions, and planning techniques to ensure favorable capital gains treatment.
Outline
- Overview of the requirements of obtaining capital gains treatment under IRC 1061
- Impact of recent IRS final regulations
- Determining "applicable partnership interest" and "applicable trade or business"
- Applicability of IRC 1061 to 1231 property
- Planning ideas for avoiding IRC 1061 three-year holding period
- Best practices for compensation arrangements in light of new holding requirements under IRC 1061
Benefits
The panel will review these and other noteworthy issues:
- Treatment of carried interest and performance of services under IRC 1061
- Understanding critical provisions of the IRS final regulations
- Available tax planning techniques and strategies for partnerships for more favorable tax treatment
- Determining partnership interest that is API subject to IRC Section 1061 holding requirements
- Understanding key planning issues regarding the applicability of IRC 1061 to 1231 property
- Potential planning opportunities presented by special allocations, transfers to unrelated parties, capital contributions, and distributions
- Best practices in ensuring favorable tax treatment in compensation arrangements involving carried interest
Faculty
Ethan R. Goldman
Partner
Davis Polk & Wardwell
Mr. Goldman advises clients on federal income tax matters related to a variety of transactions, including U.S. and... | Read More
Mr. Goldman advises clients on federal income tax matters related to a variety of transactions, including U.S. and cross-border mergers, acquisitions, joint ventures, financings, partnership investments, restructurings and spinoffs. He also regularly advises private equity sponsors and other private fund managers on tax matters relating to the formation and operation of private investment funds, as well as secondary transactions. Mr. Goldman has also represented clients in connection with tax controversy matters before the Internal Revenue Service and the U.S. Tax Court.
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Jennifer H. Weiss
Shareholder
Greenberg Traurig
Ms. Weiss focuses her practice on structuring, negotiating, and documenting complex tax oriented commercial... | Read More
Ms. Weiss focuses her practice on structuring, negotiating, and documenting complex tax oriented commercial transactions, primarily involving real estate, real estate securities, and capital market transactions. She represents traded REITs, public non-traded REITs and private REITs, and real estate operating companies, and is involved in most aspects of their portfolio acquisitions and dispositions, fund formations, joint ventures and strategic alliances, as well as the formation, qualification, and operation of REITs for federal income tax purposes. Ms. Weiss also represents public, private, and institutional taxable and tax-exempt clients structuring collective investment and reinvestment vehicles, real estate securitization, equity and debt investment structuring and restructuring, work outs, and venture capital transactions on a tax-deferred basis, including all aspects of investments in pass-thru entities.
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Carl J. Riley
Shareholder
Greenberg Traurig
Mr. Riley focuses his practice on complex tax matters, concentrating on real estate-related tax matters, including... | Read More
Mr. Riley focuses his practice on complex tax matters, concentrating on real estate-related tax matters, including initial public offerings, formations and other securities issuances, with particular emphasis on transactions involving REITs. He is experienced with tax rulings and treaties, administrative practice before taxing authorities, and the Foreign Investment in Real Property Tax Act (FIRPTA). In addition, Mr. Riley advises clients regarding mergers and acquisitions, securities offerings, and transactions involving regulated investment companies (RICs), partnerships, pension funds and other tax exempt entities, and sovereign wealth funds. He is also experienced in the formation, diligencing, structuring and implementation of various investments and acquisitions of private equity funds.
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Michael Schindler, J.D., LL.M.
Principal
Crowe
Mr. Schindler is a partner in the tax group at Crowe. He focuses on partnership taxation for the Crowe Washington... | Read More
Mr. Schindler is a partner in the tax group at Crowe. He focuses on partnership taxation for the Crowe Washington national tax office and utilizes deep technical expertise in the real estate, REITS, business tax entities and private equity sectors. Mr. Schindler has more than 30 years of experience providing tax planning, finance, and legal services.
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