Paul Weiss Discusses Issues With Private Equity Transactions After New Tax Law

On December 22, 2017, President Trump signed Public Law No. 115-97, formerly known as the “Tax Cuts and Jobs Act” (the “Act”), into law. The Act makes a number of major changes to the U.S. federal income taxation of both individual taxpayers and businesses, generally effective for taxable years beginning after December 31, 2017.  A number of key considerations for private equity transactions arise as a result of the Act, including:

  • Whether pass-through structures, including UP-C structures, continue to be advantageous,
  • The new 30% limitation on deductibility of business interest expense,
  • Potential changes to financing collateral packages,
  • The value of

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