Tax Law Defined® Blog

Showing 4 posts by Benjamin W. Hager.

2019 Update – How to Deal with Section 1061's Three Year Holding Period Requirement for Carried Interests

Uncover the Tax Benefits of Section 1061

Hedge fund, private equity and real estate professionals value the carried interest because it allows them to be compensated for their services at long-term capital gains rates. In a prior article, we discussed the impact of the new IRC § 1061 and provided a summary of its rules. This article provides an update on the status of IRC § 1061 and discusses methods for avoiding its application. Read More ›

A Roadmap for Obtaining (and not Losing) the Benefits of Section 1202 Stock

Planning Ideas for Avoiding IRC § 1061's Three-Year Holding Period Requirement

IRC § 1202 has been around for years, but has not received a lot of attention. This inattention has resulted in large part from IRC § 1202's complicated qualification rules, not to mention the planning uncertainties associated with a required five-year holding period. Read More ›

Planning Ideas for Avoiding IRC § 1061's Three-Year Holding Period Requirement

Planning Ideas for Avoiding IRC § 1061's Three-Year Holding Period Requirement

Investment fund managers value compensation in the form of carried interests, which allows them to be compensated for services with income that qualifies for long-term capital gains tax treatment. Numerous efforts have been made during the past decade to cut back or eliminate the favorable tax treatment of carried interests. Read More ›

Partnership and LLC Alert: Some Workers Treated as Employees for Tax Purposes May Need to be Reclassified as Partners as Early as August 1, 2016

Partnership and LLC Alert: Some Workers Treated as Employees for Tax Purposes May Need to be Reclassified as Partners as Early as August 1, 2016

On May 4, 2016, the federal government issued new temporary and proposed regulations that address employment taxes with respect to certain workers who both own equity interests in a partnership or LLC (taxed as a partnership and referred to as a “tax partnership”) and are employed by an LLC that is wholly-owned (a “disregarded entity” for tax purposes) by that tax partnership. Read More ›

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Attorney Spotlight

Alison M. Stemler is FBT’s Employee Benefits Team leader. She advises on executive compensation and employee benefits plans, including equity-based and deferred compensation arrangements, and assists with compliance issues for retirement and welfare plans and HIPAA.

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