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

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.