Alert May 25, 2010

Goodwin Procter Issues Client Alert on Proposed Carried Interest Legislation

Goodwin Procter issued a Client Alert discussing proposed legislation anticipated to be enacted shortly that would affect the treatment of “carried interest” incentive allocations received by sponsors of investment funds organized as partnerships and LLCs.  Under the legislation, 50% of such allocations would be treated as ordinary income (rather than capital gain as is generally the case under current law) through 2012, with 75% of such allocations treated as ordinary income thereafter.