Daily Tax Update - May 3, 2017: House Passes Spending Bill to Fund Government

House Passes Spending Bill to Fund Government:  Today, the House voted 309-118 to pass a $1.1 trillion spending bill that would fund the government through September 2017. The bill will now go to the Senate for a vote before the current funding expires on May 5. 

New Guidance Addresses ‘North-South’ Transactions:  Today, the IRS issued Revenue Ruling 2017-9 that addresses “north-south” transactions, in which a shareholder’s property is transferred to a corporation and the transfer is quickly followed by a corporate distribution. The guidance addresses two north-south transactions, one of which involves steps that are respected as separate and the other involves steps that are integrated.

Proposed Legislation Would Close Carried Interest 'Loophole':  Sen. Tammy Baldwin (D-WI) and Rep. Sander Levin (D-MI) reintroduced the Carried Interest Fairness Act (S. 1686, H.R. 2889), which would address the treatment of carried interest available to certain investment fund managers by taxing their income at the ordinary income rate rather than the more favorable long-term capital gains rate. The bill was previously introduced in the 114th Congress. The full text of the bill can be found here and a summary of the bill can be found here.