On July 31, 2020, the Department of Treasury and IRS issued proposed regulations that provide guidance to the “carried interest” rules under Section 1061 of the Internal Revenue Code. Long-term capital gains derived by individuals are subject to a preferential 20% US federal income tax rate (plus 3.8% “net investment income” tax after certain income thresholds are met).  On the other hand, individuals are subject to US federal income tax on short-term capital gains at the graduated ordinary income tax rates with a maximum tax rate of 37% (plus 3.8% “net investment income” tax after certain income thresholds are met).

Continue reading the full GT Alert, 3-Year Holding Period Rule for ‘Carried Interests’ Addressed in IRS Proposed Regulations.

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Photo of James A. Martin James A. Martin

James R. Martin focuses his practice on mergers and acquisitions, real estate, joint ventures, restructurings, and tax-exempt organizations.

Concentrations

  • Transactional tax practice involving federal, state, local, and international tax matters
  • Real estate transactions, including REITs, 1031 like-kind exchanges, tenancy-in-common agreements, and joint venture

James R. Martin focuses his practice on mergers and acquisitions, real estate, joint ventures, restructurings, and tax-exempt organizations.

Concentrations

  • Transactional tax practice involving federal, state, local, and international tax matters
  • Real estate transactions, including REITs, 1031 like-kind exchanges, tenancy-in-common agreements, and joint venture agreements
  • Limited liability companies, partnerships, S corporations, and C corporations
  • Ruling requests
Photo of Niya Tang Niya Tang

Niya Tang advises clients on the tax aspects of private equity funds, hedge funds, mergers and acquisitions, divestitures, partnerships and joint ventures, corporate restructurings and financing transactions. She represents both sponsors and investors on a wide range of U.S. and international tax matters…

Niya Tang advises clients on the tax aspects of private equity funds, hedge funds, mergers and acquisitions, divestitures, partnerships and joint ventures, corporate restructurings and financing transactions. She represents both sponsors and investors on a wide range of U.S. and international tax matters relating to both inbound and outbound investments.

Concentrations

  • Investment management and transactional tax matters
  • Mergers and acquisitions
  • Hedge funds
  • Private equity funds
Photo of Erez I. Tucner Erez I. Tucner

Erez I. Tucner is an experienced business and tax lawyer who focuses on structuring and negotiating the legal, business and tax aspects of complex multimillion-dollar domestic and cross-border mergers and acquisitions.

He has wide-ranging experience with the structuring and formation of domestic and…

Erez I. Tucner is an experienced business and tax lawyer who focuses on structuring and negotiating the legal, business and tax aspects of complex multimillion-dollar domestic and cross-border mergers and acquisitions.

He has wide-ranging experience with the structuring and formation of domestic and offshore private equity funds, family offices, and hedge funds and their investments in the United States, Latin America, Europe, Israel and worldwide.

Erez counsels high-net-worth individuals on their businesses, investment assets, and real property (including U.S. real property planning under FIRPTA).

He also represents corporate and individual taxpayers in tax audits and other tax controversy matters.

Photo of Jennifer H. Weiss Jennifer H. Weiss

Jennifer H. Weiss focuses her practice on structuring, negotiating, and documenting complex tax oriented commercial transactions, primarily involving real estate, real estate securities, and capital market transactions. She represents traded REITs, public non-traded REITs and private REITs, and real estate operating companies, and…

Jennifer H. Weiss focuses her practice on structuring, negotiating, and documenting complex tax oriented commercial transactions, primarily involving real estate, real estate securities, and capital market transactions. She represents traded REITs, public non-traded REITs and private REITs, and real estate operating companies, and is involved in most aspects of their portfolio acquisitions and dispositions, fund formations, joint ventures and strategic alliances, as well as the formation, qualification, and operation of REITs for federal income tax purposes. Jennifer also represents public, private, and institutional taxable and tax-exempt clients structuring collective investment and reinvestment vehicles, real estate securitization, equity and debt investment structuring and restructuring, work outs, and venture capital transactions on a tax-deferred basis, including all aspects of investments in pass-thru entities.