If the partnership agreement does not contain the provisions described in item 2 (or the provisions are not legally binding on all partners), each partner must execute a legally binding document stating that (a) the partnership is authorized and directed to elect the safe-harbor valuation rules, and (b) the partner agrees to comply with all requirements of the safe-harbor rules with respect to all partnership interests
transferred in connection with the performance of services while the election remains effective.
Typically, a property owner contributes its property to the umbrella partnership in exchange for partnership interests
, which are redeemable after a negotiated lock out period for shares in the REIT or cash, at the REIT's option.
2036(a) did not apply, the Tax Court already had determined a discount in excess of 30 percent to reflect the lack of control and marketability inherent in Strangi's limited partnership interest
On the deemed distribution to the original partnership's partners, assuming that each partner receiving the deemed distribution has sufficient outside basis in its partnership interest
, the distributee partners generally also will take a substituted basis in the distributed resulting partnership.
Thus, an investor owning a partnership interest
will not be able to benefit from a [section]1031 tax deferral unless either the entire partnership is willing to perform an exchange or the investor is able to restructure the partnership in such a way as to convert his partnership interest
into that of a tenant-in-common.
The proposed regulations provide clear guidelines related to determining value by introducing a new type of partnership interest
, the Safe Harbor Partnership Interest
86 per OP Unit) as consideration for the limited partnership interests
in 12 real estate limited partnerships in which AIMCO had acquired its original interest in December 1996.
469(h)(2) because they were excepted from classification as limited partnership interests
by the general partner exception in Temp.
2503(a) and whether a gift of a partnership interest
is itself entitled to the benefit of the annual gift tax exclusion.
The gain from the down payment would be allocated according to the partnership interests
9% of the outstanding limited partnership interests
in Consolidated Capital Growth Fund, approximately 21.
As a result of the transactions completed today, SkyTerra now owns approximately 52% of the outstanding limited partnership interests
of MSV and approximately 78% of the outstanding common stock of its general partner, each on a fully-diluted basis.