The Treasury Department is completing several multi-year tax regulatory projects that primarily relate to the Tax Cuts and Jobs Act of 2017 before the new Biden Administration.
Chief among them are procedures for carried interest and the deductibility of business interest, which the IRS just finalized.
Much of the new rules were already established and are familiar to the industry. The Tax Cuts and Jobs Act established a three-year holding period for a carried interest to be treated as a long-term capital gain, while proposed carried interest regulations released last year excluded Section 1231 gains from the extended period. Section 1231 applies to real property used in a trade or business that is held for more than one year and is not held by a taxpayer primarily for sale to customers and this exception made it into the final rules.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
