Treasury and IRS release final regulations on treatment of carried interest

carried interest

As seen on Bloomberg Tax 

The Treasury Department and IRS recently released final regulations governing the treatment of ‘‘carried interest’’ under tax code Section 1061. Section 1061, which was added as part of the 2017 Tax Cuts and Jobs Act (TCJA), increases the required holding period to greater than three years (as compared to the normal rule of more than one year) for fund managers to benefit from the lower long-term capital gain rates on allocations of carried interest.

The new regulations include substantial taxpayer-friendly modifications. In a newly published article for Bloomberg Tax, CohnReznick’s Moshe Biderman, Jonathan R. Collett, Robert Richardt, and Mark Papa break down the regulations.

Read their article at, or download the PDF below.

Subject matter expertise

  • Contact Moshe Moshe+Biderman
    Moshe Biderman

    CPA, Partner

  • Contact Jonathan Jonathan+Collett
    Jonathan Collett

    CPA, Partner

  • Robert Richardt headshot
    Contact Robert Robert+Richardt
    Robert Richardt

    CPA, Partner

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Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice specific to, among other things, your individual facts, circumstances and jurisdiction. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.