June 20, 2018

June 20, 2018

Subscribe to Latest Legal News and Analysis

June 19, 2018

Subscribe to Latest Legal News and Analysis

June 18, 2018

Subscribe to Latest Legal News and Analysis

New Tax Law (H.R. 1): Key Highlights for Private Investment Funds

H.R. 1, commonly referred to as the Tax Cuts and Jobs Act, implements sweeping changes to the U.S. tax system. These changes will alter the fundamental tax principles upon which many investment and organizational decisions by the private investment industry were made.

Lawyers in our Tax and Private Investment Funds groups hosted a 1-hour webinar highlighting the key provisions of the new tax law, its implications on the private investment industry, and action items for the private investment community in the coming year and beyond.

Key changes include:

Tax Rates/Taxable Income

  • 21% corporation; 37% individuals
  • Non corporate taxpayers eligible for 20% deduction of certain pass through income
  • Carried interest rule
  • Non-U.S. persons subject to tax on gains from sale of pass through entities that conduct a U.S. business
  • U.S. corporations not subject to tax on certain foreign source dividends

Deductions

  • Elimination of certain previously itemized deductions
  • Limitation on NOLs
  • Limitation on tax exempts to use losses to offset other income
  • Accelerated depreciation
  • Limitation on interest deductions
© 2018 Proskauer Rose LLP.

TRENDING LEGAL ANALYSIS


About this Author

Brian Huber
Senior Counsel

Brian Huber is a senior counsel in the Tax Department and a member of the Private Investment Funds Group.

Brian’s primary focus is tax planning for a broad range of private fund clients. He advises private equity fund managers on tax aspects of fund-raising and internal organizational matters, as well as investment activities. In addition, Brian represents U.S. and non-U.S. investors in connection with the tax and economic aspects of their investments in venture capital funds, buyout funds, hedge funds and other investment partnerships.

...
1.617.526.9675
Marguerite R Lombardo, Senior counsel
Senior Counsel

Marguerite Lombardo is a senior counsel in the Tax Department and a member of the Private Investment Funds Group. Marguerite’s practice focuses on the tax and economic aspects of forming, operating and investing in domestic and international private investment funds, including venture capital funds, buyout funds, fund of funds, secondary funds and other investment partnerships. She also has experience with tax planning for operating partnerships and limited liability companies, real estate investment trusts and advising not-for-profit clients on matters such as applying for and maintaining exemption from federal income tax.

Prior to joining Proskauer, Marguerite was a counsel in the Boston office of WilmerHale, where her practice focused on the tax and economic aspects of private investment funds.

1.617.526.9472
Arnold P May, Proskauer, Tax Litigation Lawyer, Private Investment Funds Attorney
Partner

Arnold P. May is a partner in the Tax Department and a member of the Private Investment Funds Group. His practice focuses on tax planning for private equity fund managers in connection with their fund-raising and internal organizational matters, as well as investment activities.

In addition, Arnold represents U.S. and non-U.S. investors in connection with their investments in venture capital funds, buyout funds, hedge funds and other investment partnerships. In this capacity, as well as in connection with advising private equity funds with...

617.526.9757
Amanda Nussbaum, Tax Attorney, Proskauer Rose Law Firm
Partner

Amanda H. Nussbaum is a Partner in the Tax Department and also is a member of the Private Investment Funds Group. Her practice concentrates on planning for and the structuring of domestic and international private investment funds, including venture capital, buyout, real estate and hedge funds, as well as advising those funds on investment activities and operational issues. She also represents many types of investors, including tax-exempt and non-U.S. investors, with their investments in private investment funds.

212-969-3642