Extract to table

Specifically, IRC § 1061(a) states: "If one or more applicable partnership interests are held by a taxpayer at any time during the taxable year, the excess (if any) of — (A) the taxpayer's net long-term capital gain with respect to such interests for such taxable year, over (B) the taxpayer's net long-term capital gain with respect to such interests for such taxable year computed by applying paragraphs (3) and (4) of section 1222 by substituting '3 years' for '1 year,' shall be treated as short-term capital gain, notwithstanding section 83 or any election in effect under section 83(b)

" In practical terms, this provision requires that, for gains allocable to an API to retain their character as long-term capital gains, the underlying assets generating such gains must have been held for more than three years — rather than the one-year period generally applicable under IRC § 1222