Carried Interest
A carried interest – or “the promote” as it is often referred to in the real estate context – is the risk-based partner’s portion of the capital gain from the sale of a real estate development. The carried interest is the contractually agreed-upon share of the final proceeds associated with the project that the developer may receive after the investors have been paid their promised rate of return. It is not guaranteed and is justified based on the real risks associated with creating a successful shopping center, including recourse on debt, potential lawsuits, unforeseen environmental remediation, permitting delays and tenancy guarantees. ICSC opposes proposals to change the tax treatment of carried interest.
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Carried Interest in Retail Real Estate, view here.
Find news coverage relating to Carried Interest below:
- Carried interest bill introduced in Senate
- Carried Interest, 1031 Exchanges On Chopping Block in Biden's American Families Plan
Real estate industry tax statement – House Ways & Means Committee Hearing, 05.19.2021
Real estate industry tax statement – Senate Finance Committee Hearing, 05.18.2021
NREO letter to Congress regarding H.R. 1068 – U.S. Congress, 06.14.2021
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