In a real estate workout involving a partnership or limited liability company (entity) consideration has to be given to either (i) continue holding the property in the entity or (ii) having the entity sell the property. The tax consequences of each action are considered below.
Hold the Property
Despite its cash flow problems, the entity may choose to hold on to the property in order to buy time for individual investor actions at the individual partner level. Such a technique allows the individual partners to choose the best time and most appropriate method for disposing of their interests.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
