By: Amanda Wilson
Because of the significant flexibility and tax benefits associated with partnerships, many businesses utilize partnerships in some shape or form. For tax purposes, a partnership can be in the form of a general partnership, limited partnership, limited liability company or limited liability limited partnership. While these forms offer great tax advantages, they can also result in unexpected surprises and traps for the unwary when a partnership interest is sold.
In a recent article, I explain many of these traps, and how you can avoid breaking the bank with an unexpected and unpleasant tax day surprise. The article can be found here.