469(h) (2) and the regulations to apply, the taxpayer must actually be a limited partner in a statelaw
limited partnership (see also Newell, T.C.
'We conclude and hold that petitioners' ownership interests in the LLPs and LLCs are excepted from classification as '
limited partnership interests' under the temporary regulations by operation of the general partner exception.
Section 620.1703 provides that a judgment creditor is entitled only to a charging lien, and has no right to foreclose a debtor's interest in a
limited partnership or to receive the underlying partnership assets.
Tax credits and other real property rights may be passed through to equity investors as part of a
limited partnership agreement.
In a
limited partnership, only the general partner does not have limited liability.
The fact pattern of the TAM was based upon a childless widow who transferred
limited partnership interests to various family members.
In this case, the innovation was the widespread adoption of the
limited partnership. Until the late 1970s, private equity investments were undertaken mainly by wealthy families, industrial corporations, and financial institutions that invested directly in issuing firms.
Yet an LLC has certain tax advantages that a
limited partnership or an S corporation doesn't.
Simms, we will take a more in-depth look at the use of the Family
Limited Partnership as a viable tool for the transfer of family wealth.