• videocam Live Webinar with Live Q&A
  • calendar_month February 9, 2027 @ 1:00 PM ET/10:00 AM PT
  • signal_cellular_alt Intermediate
  • card_travel Tax Law
  • schedule 90 minutes

Tax Treatment of Carried Interest: IRS Regs, Strategies for Tax, Private Equity, Real Estate Professionals

IRC Section 1061, Capital Contributions, Transfers to Unrelated Parties, Special Allocations, Section 1231 Property

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CPE
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About the Course

Introduction

This CLE/CPE course will guide tax counsel and advisers on the current tax law's impact on the treatment of carried interest and available planning opportunities. The panel will discuss IRS regulations, the application of Sec. 1061, Sec. 1231 property, implications of related-party transactions, and planning techniques to ensure favorable capital gains treatment.

Description

IRC 1061 increases the holding period required for long-term capital gains treatment from more than one year to more than three years. The impact of the three-year holding period could be burdensome to hedge funds, private equity, and real estate professionals.

There is controversy over carried interest because the tax rules allow hedge funds, private equity, and real estate professionals to pay taxes on carried interest at the capital gains tax rate instead of the higher tax rate applicable to ordinary income. In addition, IRC 1061 increases the required long-term capital gains holding period for an "applicable partnership interest" to more than three years. Therefore, advisers must be able to identify interests subject to IRC 1061 for tax planning purposes.

Tax counsel and advisers must also understand partnership interests that fall within the definition of profits interest under Rev. Proc. 93-27 or any exceptions, whether or not the partnership interest was issued in connection with the performance of substantial services in any applicable trade or business, and what partnership interests are not subject to IRC 1061. Also, advisers and counsel need to recognize any available planning mechanisms for avoiding the three-year holding period requirements to prevent unintended tax liability.

Listen as our panel discusses the requirements of IRC 1061, determining applicable partnership interest subject to the new holding requirements, key planning issues for 1231 property, and tax planning techniques to maintain favorable tax treatment of carried interest.

Presented By

Simcha B. David
Partner
Eisner Advisory Group, LLC

Mr. David is Partner-in-Charge of the National Financial Services Tax Group and a leader of New York Tax, with more than 20 years of experience that encompasses both the tax accounting and tax legal side of the profession. His focus is on financial services and investment management entities, and he frequently advises on all aspects of tax planning and compliance for financial services firms and their related entities. Mr. David's clients cover a wide variety of asset classes, including hedge funds, private equity funds, and funds of funds. He assists clients by providing tax consulting and compliance services. Mr. David works with clients on the tax implications of the initial structuring of their fund entities, review of their partnership and offering documents, tax implications of various types of securities transactions, and general tax issues and planning opportunities that arise during the life cycle of a fund.

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Brian T. Lovett, CPA, JD
Partner, Team Leader, Real Estate - Strategic Tax Planning
Withum Smith + Brown, PC

Mr. Lovett has extensive experience serving the tax needs of both public companies and closely held businesses, including all aspects of tax compliance for partnerships and corporations. He advises clients with regard to the structure and tax consequences of new business ventures and assists with restructuring existing businesses for increased tax efficiency. Prior to joining Withum, Mr. Lovett was with a “Big 4” accounting firm, working closely with large, multinational real estate investment companies.

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Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

  • CPE credit is not available on recordings.

  • BARBRI is a NASBA CPE sponsor and this 90-minute webinar is accredited for 1.5 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).


  • Live Online


    On Demand

Date + Time

  • event

    Tuesday, February 9, 2027

  • schedule

    1:00 PM ET/10:00 AM PT

I. Overview of the requirements for obtaining capital gains treatment under IRC 1061

II. IRS regulations

III. Determining "applicable partnership interest" and "applicable trade or business"

IV. Applicability of IRC 1061 to 1231 property

V. Planning ideas for avoiding IRC 1061 three-year holding period

VI. Best practices for compensation arrangements in light of new holding requirements under IRC 1061

The panel will review these and other noteworthy issues:

  • Treatment of carried interest and performance of services under IRC 1061
  • Available tax planning techniques and strategies for partnerships for more favorable tax treatment
  • Determining partnership interest that is "applicable partnership interest" subject to IRC Section 1061 holding requirements
  • Understanding key planning issues regarding the applicability of IRC 1061 to 1231 property
  • Potential planning opportunities presented by special allocations, transfers to unrelated parties, capital contributions, and distributions
  • Best practices in ensuring favorable tax treatment in compensation arrangements involving carried interest


Learning Objectives

After completing this course, you will be able to:

  • Ascertain the treatment of carried interest and performance of services under IRC 1061
  • Determine partnership interests that constitute "applicable partnership interests" subject to IRC 1061 holding requirements
  • Identify planning opportunities presented by special allocations, transfers to unrelated parties, and capital contributions and distributions


  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite:

    Three years+ business, legal or public firm experience at mid-level within the organization, involved in sophisticated tax planning and reporting; supervisory authority over other attorneys/preparers/accountants. Knowledge and understanding of partnership and other pass-through entities, IRC 1061, 1231; familiarity with tax planning for hedge funds, private equity, and real estate professionals.

BARBRI, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .