January 8, 2018
Stroock Special Bulletin
On December 22, 2017, a sweeping tax reform bill (the “Tax Reform Act” or the “Act”) was signed into law. This Stroock Special Bulletin focuses on how the Act changes the treatment of a so-called “carried interest” and how these changes may affect the ability of a recipient of a carried interest to recognize long-term capital gain on the disposition of such interest, or a disposition of the assets held by the entity with respect to which the carried interest is issued.
Although the Tax Reform Act changes are unlikely to minimize the traditional use and/or practice of many common carried interest arrangements, clients and friends of the Firm would be wise to consider their existing practices and forward planning carefully in light of these changes, particularly with respect to exit and disposition strategies.
January 8, 2018
Stroock Special Bulletin
On December 22, 2017, a sweeping tax reform bill (the “Tax Reform Act” or the “Act”) was signed into law. This Stroock Special Bulletin focuses on how the Act changes the treatment of a so-called “carried interest” and how these changes may affect the ability of a recipient of a carried interest to recognize long-term capital gain on the disposition of such interest, or a disposition of the assets held by the entity with respect to which the carried interest is issued.
Although the Tax Reform Act changes are unlikely to minimize the traditional use and/or practice of many common carried interest arrangements, clients and friends of the Firm would be wise to consider their existing practices and forward planning carefully in light of these changes, particularly with respect to exit and disposition strategies.