Finanse publiczne · 19/01/2021

IRS Issues Final Regulations on Section 1061 of the Internal Revenue Code

The Internal Revenue Service (IRS) has released final regulations clarifying the application of Section 1061 of the Internal Revenue Code, which recharacterizes certain net long-term capital gains as short-term capital gains for partners holding applicable partnership interests. The new rules affect taxpayers with interests in partnerships and passthrough entities.