USA: Final Carried Interest Regulations Drop Unreasonable Limitations
On 19 January 2021, the final carried interest regulations were published in the Federal Register.
On 19 January 2021, the final carried interest regulations were published in the Federal Register. The final regulations generally adopt the proposed regulations that were issued in August 2020. However, there are a few noteworthy (and generally taxpayer favourable) modifications that taxpayers should be aware of.
The carried interest provision was added by TCJA and re-characterises certain net long-term capital gains attributable to carried interests as short-term capital gains. This alert highlights the following changes:
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