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Treasury Releases Final Carried Interest Regulations

Client memorandum | January 11, 2021

On January 7, 2021, the U.S. Treasury Department and the IRS released final regulations on the three-year carried interest holding period rule enacted in 2017. The guidance simplifies many rules from the proposed regulations issued in August 2020, in many cases in ways that are favorable to carried interest holders, but other aspects of the rules are unfavorable for some market participants, and many issues remain subject to further review by the Treasury Department and IRS.

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