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IRS Releases Final Carried Interest Regulations - Tax


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Asset managers should be aware that on January 7, 2021, the IRS
released final regulations (the
Final
Regulations ) implementing section 1061 of the Code,
which governs the character of carried interest gains allocated to
or derived by a service partner in an investment fund. Very
generally, the statute denies access to the 20% rate for long-term
capital gains attributable to a carried interest unless the holder
of the asset has a holding period of more than three years. 
Capital gains for which long-term treatment is denied will be ....

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