IRS Issues Proposed Regulations on Three-Year Holding Period Applicable to Carried Interests
August 22, 2020 - The Internal Revenue Service recently issued proposed regulations on how to apply the Tax Cuts and Jobs Act's three-year holding period to “carried interests.” These proposed regulations primarily apply to the gain or loss that private equity, venture capital, real estate, hedge fund, and debt professionals recognize on sales of their carried interests; and distributions or allocations of gain they receive from the sale of a fund's portfolio assets.
The following client alert covers questions and answers that address the following:
- In what situations does the three-year holding apply?
- Who does the three-year holding apply to?
- How to apply the three-year holding period.
PDF of the Client Alert: IRS Issues Proposed Regulations on Three-Year Holding Period Applicable to Carried Interests.
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