Following up on last week’s blog post on carried interests, a new bill was introduced Friday in the House of Representatives targeting carried interests. This bill, H.R. 2889, is titled the Carried Interest Fairness Act of 2015. One of the main consequences of the bill is that, if enacted into law, partners that provide investment management services to an investment partnership would find their distributive shares of capital gains recharacterized as ordinary income .
This is not the first time that legislation has been introduced targeting carried interests and, if unsuccessful, it is unlikely to be the last. Carried interest income continues to be a target of the Obama administration and members of Congress.
For now, we will monitor this bill and let you know if there are any developments.