Isaac Grossman and Hunter Book Share Strategies for Handling Potential Tax Rate Increases on Interim Investments
Partner and Chair of Morrison Cohen’s Tax Practice Isaac Grossman and Senior Counsel Hunter Book authored an article in Tax Notes Federal entitled “Private Equity Sellers Three-Year Holding Period for Carried Interest Creates Conflict.” In the article, the authors explain that the inconsistency in holding periods for carried interest and general long-term capital gain presents a new conflict for private equity sponsors.
How should private equity sponsors handle the conflicts that can arise from selling investments that have been held by a private equity fund for less than the required three-year holding period for carried interest, but more than one year? With the upcoming election and recent tax proposals to increase long-term capital gain rates, private equity sponsors may feel pressure from investors to preemptively sell investments. The authors provide private equity sponsors with several strategies to navigate this conflict.
Read the full article, attached below.
Contacts
- Isaac Paul Grossman Partner & Chair, Tax
- igrossman@morrisoncohen.com
- Hunter J. Book Senior Counsel
- hbook@morrisoncohen.com
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