In the context of investments, 'at risk' refers to being exposed to the danger of a financial loss. Specifically, for investors in a limited partnership, they can claim tax deductions only if they can demonstrate a possibility of losing their invested capital.
A Family Limited Partnership (FLP) is a type of limited partnership where the majority of interests are held by members of the same family. It can provide tax benefits, such as reducing gift and estate taxes, but has limitations regarding ownership and transferability.
Income property refers to real estate acquired specifically for the income or cash flow it generates. It can be owned individually, by a company, or be part of a limited partnership, with buyers often aiming for long-term capital gains upon sale.
A limited (special) partner in a limited partnership is a part owner whose liability is restricted to the amount they have invested and typically has limited involvement in the management of the business.
A limited partner's liability is restricted to his or her investment in the partnership. Limited partners are often passive investors and do not participate in the day-to-day operations of the business.
A limited partnership is a type of business entity in which at least one partner (the general partner) manages the business and is personally liable for the debts, while other partners (limited partners) contribute capital and have limited liability.
An association of two or more people (partners) formed for the purpose of carrying on a business. Partnerships vary in legal structure and liability among partners and are specifically governed by laws and agreements.
A pass-through entity is a non-taxable business structure where income or expenses are passed directly to the owners, retaining their original character.
An investment or activity that generates passive income, typically seen in income-oriented real estate limited partnerships. This income can offset passive activity losses (PALs) for tax purposes.
A Private Equity Fund is a collective investment scheme used primarily for acquiring or providing business capital, usually structured as a limited partnership, that receives capital from various accredited and institutional investors.
A Publicly Traded Partnership (PTP) is a limited partnership with interests that are traded on public exchanges or over the counter. This type of partnership is also referred to as a Master Limited Partnership (MLP) and is subject to federal securities law registration requirements.
A Real Estate Limited Partnership (RELP) is a form of limited partnership that invests in real estate properties, allowing the income and potential profits to pass through to the limited partners while being managed by a general partner.
Selection of filing status available for state and federal income taxes, including options for both individuals and businesses, significantly impacting tax obligations.
A Vulture Fund is a type of limited partnership that invests in distressed properties, often real estate, with the intent of profiting when prices rebound.
