Starting on page 191, the recently passed Senate Tax Bill would bring some change to the taxation of carried interest. The Senate Tax Bill would insert into the IRC a new Section 1061 - Partnership Interests Held in Connection with Performance of Services. This new section provides that, for applicable partnership interests, capital gains previously classified as long-term will be treated as short-term capital gain unless the gains were generated from assets held for more than three years.
The Senate passed its tax bill on December 2nd by a 51-49 margin. Some key points include:
Thanks to all for joining our October 24 webinar “Managing Clients Through Business Valuation Matters.” We hope it was both helpful and informative. There were many outstanding questions sent to us during the webinar and we’d like to share comments, poll results and content: