Source: https://www.straffordpub.com/products/tax-treatment-of-carried-interest-planning-opportunities-for-tax-private-equity-and-real-estate-professionals-2018-07-24
Timestamp: 2019-04-18 21:32:20+00:00

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This CLE/CPE webinar will provide guidance to tax counsel and advisers on the new tax law’s impact on the treatment of carried interest and available planning opportunities. The panel will discuss the application of §1061, §1231 property, implications of related party transactions and planning techniques to ensure favorable capital gains treatment.
IRC §1061 increases the holding period required for long-term capital gains treatment from more than one year to more than three years. The impact of the new three-year holding period could be burdensome to hedge fund, private equity and real estate professionals.
There is controversy over carried interest because the tax rules allow hedge fund, private equity and real estate professionals to pay taxes on carried interest at the capital gains tax rate instead of the higher tax rate applicable to ordinary income. IRC §1061 increases the required long-term capital gains holding period for an “applicable partnership interest” to more than three years. Advisers must be able to identify interests subject to IRC §1061 for tax planning purposes.
Tax counsel and advisers must also understand partnership interests that fall within the definition of profits interest under Rev. Proc. 93-27 or any exceptions, whether or not the partnership interest was issued in connection with the performance of substantial services in an applicable trade or business, and what partnership interests are not subject to IRC §1061. Also, it is essential for advisers and counsel to recognize any available planning mechanisms for avoiding the three-year holding period requirements to prevent unintended tax liability.
Listen as our panel discusses the requirements of IRC §1061, determining applicable partnership interest subject to the new holding requirements, key planning issues for §1231 property, and tax planning techniques to maintain favorable tax treatment of carried interest.
Mr. Lehn is a partner in the private client and tax team. He has extensive experience in federal and state income, estate and gift taxation. With his wide range of business and financial knowledge, clients look to him to apply his experience to structure complex business transactions and relationships and solve a variety of business-oriented problems while utilizing the benefits of trust, estate and tax planning. His clients include investors, entrepreneurs, senior level executives, family offices and fund managers and principals. His practice includes structuring investments and acquisitions, asset protection and preservation, and trust and estate planning.

References: §1061
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 §1231