Final regulations on “carried interest” provision under section 1061 (text of regulations)
Final regulations on “carried interest” provision
The IRS today posted to its website a version of the final regulations (T.D. 9945) under section 1061—that is, the “carried interest” provision added to the Code by the 2017 U.S. tax law (Pub. L. No. 115-97) or the law often referred to as the “Tax Cuts and Jobs Act” (TCJA).
Read the final regulations [PDF 585 KB] (168 pages)
The version of the final regulations released today by the IRS includes the following statement:
This document has been submitted to the Office of the Federal Register (OFR) for publication and will be pending placement on public display at the OFR and publication in the Federal Register. The version of the final rule released today may vary slightly from the published document if minor editorial changes are made during the OFR review process. The document published in the Federal Register will be the official document.
These regulations finalize regulations that were proposed during the summer 2020. Read an KPMG report (August 2020) [PDF 383 KB] that discusses the proposed regulations under the carried interest provision. According to the preamble to the final regulations, the final regulations retain the structure of the proposed regulations, but “include multiple substantive changes compared to the proposed regulations.”
The purpose of this report is to provide text of the final regulations as released by the IRS.
© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.