Carried Interest Lives on Despite Tax Reform

March 19, 2018 – Media Mention
Pensions & Investments

Louis Tuchman was quoted in Pensions & Investments, discussing the loopholes in the carried interest rule following the 2017 tax reform. The new carried interest rule was intended to close the loopholes left open in previous versions, but failed to do so. Some private fund managers found an even bigger opportunity to keep the carried interest advantage in the tax law's exemption for corporations. Tuchman said that if fund managers rush to form S corporations, they might run into the other S corp-associated tax restrictions that are often hard to undo. He said, "It's hard to defend the loophole for an S corporation from a policy point of view, and therefore I would expect it to be fixed.”