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Changes to Taxation of Investment Management Services Income in Partnerships

This act modifies how income earned by individuals providing investment management services through partnerships is taxed. The goal is to ensure this income is treated as ordinary income rather than capital gains, potentially increasing tax burdens for some financial professionals. It also introduces stricter penalties for incorrect reporting of these incomes.
Key points
Income from investment management services in partnerships will be treated as ordinary income, not capital gains, potentially leading to higher taxes.
New rules are introduced for valuing partnership interests received for services.
Penalties for incorrect reporting of investment management service income are increased.
This income will be included in the self-employment tax base for individuals.
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Expired
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Additional Information
Print number: 117_HR_1068
Sponsor: Rep. Pascrell, Bill, Jr. [D-NJ-9]
Process start date: 2021-02-15
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Carried Interest Fairness Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_1068.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-02-15.

What are the main provisions?

Key points include:

  • Income from investment management services in partnerships will be treated as ordinary income, not capital gains, potentially leading to higher taxes.
  • New rules are introduced for valuing partnership interests received for services.
  • Penalties for incorrect reporting of investment management service income are increased.
  • This income will be included in the self-employment tax base for individuals.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Pascrell, Bill, Jr. [D-NJ-9].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Taxes Economy