Transcription of Sales vs. Redemptions of Partnership Interests
{{id}} {{{paragraph}}}
Example: tourism industry
Sales vs. Redemptions of Partnership Interests
Sales vs. Redemptions of Partnership Interests Follow the yellow brick road? Often, when a partner of a Partnership is going to depart, there may be a choice as to whether the remaining partners will purchase the departing partner s interest on a pro rata basis or whether the Partnership will redeem the interest . Under either approach, the departing partner ultimately will wind up with the same amount of proceeds and the remaining partners will wind up with the same percentage ownership interest in the Partnership after the departure. However, depending on which road the parties take, the ultimate tax results can differ based on various detours along the way, and there can be visits with monkeys, poppies and even the wizard himself. This article is a think piece for practitioners to consider when choosing between a sale and a redemption of a Partnership interest , in situations in which the choice is there for the taking.
Sales vs. Redemptions of Partnership Interests Follow the yellow brick road? Often, when a partner of a partnership is going to depart, there may be a choice as to whether the remaining partners will purchase the departing partner’s
Tags:
Information
Domain:
Source:
Link to this page:
Please notify us if you found a problem with this document: