Carried Interest Tax Rules Coming by 2020, Official Says

The Treasury Department is planning to issue regulations restricting how hedge fund managers can claim a valuable tax break by early next year, a top Treasury official said.

The regulations will likely bar money managers from using S corporations to take advantage of an exemption to new rules for carried interest contained in President Donald Trump’s tax legislation. The rules are slated to be released by early 2020, David Kautter, Treasury’s assistant secretary for tax policy, said Nov. 13 at a American Institute of CPAs conference in Washington.

The regulations would address what some tax policy experts see as a ...