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:
The 2017 hurricane season is sending insurance claims to unprecedented levels. Business entities have faced catastrophic losses, including significant property damage, lost income and other insurable losses. Business owners that have been impacted should review their policies to understand what is covered and the proper notice with any potential recovery of their losses. The following guidelines provide assistance to affected business owners when documenting and filing a business interruption claim (“BIC”).
On October 2, 2017, Treasury Secretary Steven Mnuchin issued a report recommending, among other changes, the complete withdrawal of proposed regulations under Section 2704 of the Internal Revenue Code. The proposed regulations had caused significant concern amongst owners of closely held businesses and their advisors since being released in August of 2016. Business owners, advisors and members of the business valuation community flooded the IRS with comments and appeared at a public hearing to indicate that the proposed regulations were overreaching, created far too many hypothetical and unrealistic circumstances, and would lead to unintended consequences, including overvaluation in cases where discounts for lack of control and lack of marketability were warranted.