Discussion:Limited partner or investor?
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Advanced Tax Questions --> Limited partner or investor?
Discussion Forum Index --> Tax Questions --> Limited partner or investor?
| 8 July 2008 | |
| I have a client that has an LLP with the interests held by the husband and wife. At 1/1/08 the wife sells her entire interest to their adult son in the amount of her capital account. The LLP normally holds real estate but at the time of the sale on 1/1/08 the LLP had only cash. At any rate, the mother plans to invest in some of the LLP real estate transactions. QUESTION: I'm wondering if it would be more beneficial to have her remain a limited partner like she was originally, but only sharing in the profits from the sale of her investment or whether it would be better to have her just invest in some of the RE deals and set up a note payable to her. For simplicity (I think) I am leaning towards having her remain a LP (no capital %) and only receiving a % of profits (or losses) from sales of RE deals she invests in so that the LLP does not have to set up a promissory note and pay interest. I don't know if I am overlooking anything and would like your thoughts and feedback. Thanks! | |
RoyDaleOne (talk|edits) said: | 8 July 2008 |
| There is no way your question can be answered in this forum, because:
1. The question is to abstract, 2. Not enough background information, 3. Beneficial to whom, what is good for one may not be the best for the other. Well, at least for me. | |
To join in on this discussion, you must first
log in.
