Tax bill amendments put carried interest in the crosshairs

While the tax treatment of carried interest escaped the initial draft of the Tax Cuts and Jobs Act (H.R. 1), it featured prominently among suggested changes included in a series of amendments introduced Monday by House Ways and Means Committee Chairman Kevin Brady (R-Texas).

Brady said the proposed amendments include a provision “that imposes an additional holding period requirement of three years with respect to gains on a ‘carried interest’ in an investment or real estate business.” According to current law, investments need to be held for only one year to be considered long-term, and thus qualify for the 20% rate. ...