medium · Private Equity
Under the U.S. Tax Cuts and Jobs Act (TCJA) Section 1061, a GP partner receives carried interest from the sale of TechSoft Inc. If the fund held the investment for 2.5 years before the sale, how is the carried interest distribution taxed for the individual GP partner?
- Qualified Small Business Stock (QSBS) Exclusion
- Tax-Free Return of Capital
- Ordinary Income
- Long-Term Capital Gains
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