IRS Carried Interest Regulations: Significant Tax Challenges and Planning Opportunities
A live 90-minute premium CLE/CPE video webinar with interactive Q&A
This CLE/CPE course will guide tax counsel and advisers on the IRS final regulations, the tax treatment of carried interest, and available planning opportunities. The panel will discuss the application of Sec. 1061, modifications to the capital interest exception, applicable partnership interests (API) dispositions, and other significant provisions. The panel will also discuss Secs. 1231 and 1256 property, implications of related party transactions, and planning techniques to ensure favorable capital gains treatment.
Outline
- Overview of the requirements for obtaining capital gains treatment under IRC 1061
- Impact of IRS final regulations
- Determining API and "applicable trade or business"
- Applicability of IRC 1061 to 1231 property
- Planning ideas for avoiding IRC 1061 three-year holding period
- Best practices for compensation arrangements in light of new holding requirements under IRC 1061
Benefits
The panel will review these and other noteworthy issues:
- Treatment of carried interest and performance of services under IRC 1061
- Understanding critical provisions of the IRS final regulations
- Available tax planning techniques and strategies for partnerships for more favorable tax treatment
- Determining partnership interest that is API subject to IRC Section 1061 holding requirements
- Understanding key planning issues regarding the applicability of IRC 1061 to 1231 and 1256 property
- Potential planning opportunities presented by special allocations, transfers to unrelated parties, capital contributions, distributions, and lending transactions
- Best practices in ensuring favorable tax treatment in compensation arrangements involving carried interest
Faculty
Patrick M. Cox
Partner
Nixon Peabody
Mr. Cox is a partner within Nixon Peabody’s M&A and Corporate Transactions practice group and member of the... | Read More
Mr. Cox is a partner within Nixon Peabody’s M&A and Corporate Transactions practice group and member of the Tax team. He focuses on various tax aspects facing domestic and international companies and provides significant experience in areas of capital markets, reorganizations, real estate, and private equity matters.
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Emily M. Cummins
Senior Associate
Baker Tax Law
Ms. Cummins joins us from Proskauer where she was an associate in the firm’s tax department and a member of its... | Read More
Ms. Cummins joins us from Proskauer where she was an associate in the firm’s tax department and a member of its private funds group. Her work centers on private investment funds and the tax concerns faced by both sponsors and investors in private equity funds. Ms. Cummins has helped to negotiate buy-side and sell-side secondaries transactions; planned and structured continuation funds and other sponsor-led liquidity events; and assisted sponsors with fund structuring concerns involving domestic and international investments. She was selected to be a Protégée for Proskauer’s Women Sponsorship Program, an initiative for high performing midlevel lawyers that champions emerging leaders. Ms. Cummins previously served as co-chair of the Firm’s LGBTQ Affinity Group, and received Proskauer’s Golden Gavel Award for excellence in pro bono work in 2021.
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Cannot Attend April 23?
Early Discount (through 03/28/25)
You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. CPE credit is not available on recordings. Strafford will process CLE credit for one person on each recording. All formats include course handouts.