December 22, 2018, marked the first anniversary of the signing of the Tax Cuts and Jobs Act (Tax Act). The impact of this landmark piece of legislation continues to be felt throughout the investment funds industry. In a two-part guest series, Michele Gibbs Itri, partner at Tannenbaum Helpern Syracuse & Hirschtritt, provides a brief overview of the Tax Act’s key provisions affecting private equity funds and their respective portfolio companies; hedge funds; and private fund managers, as well as updates on these provisions since the enactment of the Tax Act, including a discussion about possible tax structuring strategies and other considerations going forward for investment managers and their funds. This first article addresses the Tax Act’s impact on carried interest earned by fund managers, the self-employment tax and corporate versus pass-through structures, as well as the new limitation on the deduction of business interest. The second article will explore the effect of the elimination of miscellaneous itemized deductions; the disallowance of deductions for excess business losses; changes to net operating loss deductions; the tax treatment of gain or loss realized on the sale of a partnership interest by a foreign partner; and modifications to the controlled foreign corporation regime and other international tax rules. For more on the Tax Act, see “Planning Strategies for Private Fund Managers Under the Tax Cuts and Jobs Act” (Jun. 7, 2018); and “New Tax Law Carries Implications for Private Funds” (Feb. 1, 2018). For additional insights from Itri, see “What Impact Will FATCA Have on Offshore Hedge Funds and How Should Such Funds Prepare for FATCA Compliance?” (Feb. 1, 2013).