Client Alert: Limited Application of New Three-Year Holding Period for Carried Interests

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January 09, 2018
Under the Tax Cuts and Jobs Act, certain carried interests and other profits interests must be held for more than three years to receive long-term capital gains treatment upon sale or redemption.  While not free from doubt, it does not appear likely that the three-year holding period applies to carried interests granted with respect to private equity funds primarily invested in upstream and midstream oil and gas assets.