Private Investment Funds and Tax Reform

Carried Interest, QBI and Interest Deductions, Sale of Partnership Interests, Computation of UBTI, and More

Recording of a 90-minute premium CLE/CPE webinar with Q&A


Conducted on Wednesday, October 2, 2019

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE/CPE webinar will provide private equity counsel with a working knowledge of the critical provisions of tax reform for the private investment fund industry.

Description

Tax reform of 2017 introduced a variety of new and revised provisions that fundamentally alter established tax principles that the private equity industry relies on to make investment and organizational decisions. Counsel to both fund sponsors and fund investors should have a thorough understanding of these changes.

Significant new provisions include the taxation of carried interest and other partnership interests, the reduction in the corporate income tax rate, and the ability of partnerships and LLCs (subject to certain limitations) to deduct 20% of qualified business income from their taxable income. The law also provides for new restrictions on deductions for business interest expense, limitations on excess business losses, and the expansion of the controlled foreign corporation rules.

The tax reform law also includes new rules for computing UBTI and a new ECI withholding regime that impacts not only buyers and sellers of partnership interests but also the underlying partnerships.

Listen as our authoritative panel analyzes these and other provisions of the new tax reform law that will impact private equity and other investment funds. The group will discuss the new rules on carried interest, qualified business income, business interest expense, sale of partnership interests by foreign investors, and more.

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Outline

  1. Tax reform 2017: background and timeline for implementation
  2. Carried interest
  3. 20% deduction on qualified business income
  4. Gain on sale of an interest in a partnership engaged in a U.S. trade or business treated as ECI
  5. UBTI computed separately for each trade or business activity
  6. Changes to interest deductibility: implications not only for portfolio companies and leveraged "blocker" corporations
  7. Limitation on excess businesses' losses for taxpayers other than corporations
  8. Expansion of controlled foreign corporation rules

Benefits

The panel will review these and other highly relevant issues:

  • How does the 20% qualified business income deduction work and what constitutes "qualified business income"?
  • How might the new carried interest provisions affect fund sponsors and the alignment of interests between fund sponsors and fund investors?
  • How are foreign investors and tax-exempt investors in private equity funds impacted by the new tax law?
  • How might changes in interest deductibility and the new corporate tax rate affect fund and investment structures?

Faculty

Clegg, Jace
Jace E. Clegg

Atty
Gunderson Dettmer Stough Villeneuve Franklin & Hachigian

Mr. Clegg's practice encompasses all areas of general corporate and partnership income taxation as well as the...  |  Read More

Huber, Brian
Brian D. Huber

Partner
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

Other Formats
— Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

$347

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CPE Not Available

$347