The most sweeping US tax legislation in more than three decades was passed just before the new year. This massive bill was put together in seven weeks and provide landmines, opportunities, and contradictions for institutional portfolio managers and other investors.

It will impact not only taxation but also investment pricing due to its treatment of institutional, individual, and foreign investors.

This excellent presentation was conducted by Charles H. Purcell, of K&L Gates LLP  for a gathering of CFA and CAIA Seattle chapters on April 17, 2018.

Rather than restating much of the presentation, I have attached a pdf of the presentation. The some of the highlights include:

Fund and Management Issues –

  • Reduction of corporate rates
  • The three-year holding period for long-term capital gains
    treatment for carried interests
  • 20% pass-through income deduction
  • Section 1202 offers a big opportunity

Portfolio Company and Investment Related Issues –

  • Changes to rules relating to corporate net operating losses (“NOLs”)

Tax Reform Presentation for CAIA – CHP v.2(1)

I highly recommend Mr. Purcell for guidance and insight on this disruptive legislation. His contact information is available on the last slide of the presentation.