Carried interest, also called a “promote,” has been a fundamental part of real estate investment partnerships for decades. Managing partners receive a carried interest, or a share of profits once an asset is sold, in recognition of both the value they bring to the venture and the risks they take. The apartment industry strongly opposes proposals to change the tax treatment of carried interest. View our Issue Fact Sheet.
On July 27, Senate Majority Leader Charles Schumer (D-NY) and Senator Joe Manchin (D-WV) reached agreement on reconciliation legislation that would raise $739 billion, in part by tightening rules on carried interest.
NMHC has put together a frequently asked questions page intended to address inquiries as to the potential implications of this legislation on the multifamily industry.
More information on carried interest, in addition to the NMHC/NAA viewpoint.Read More
- What You Need to Know: How the Reconciliation Legislation Could Impact the Multifamily Industry
- FAQs: What the Multifamily Industry Needs to Know About Inflation Reduction Act of 2022 Carried Interest Provisions
- Analysis: Proper Taxation of the Promote in a Real Estate Partnership ("Carried Interest")