Continuation of a Partnership: Avoiding Adverse Tax Consequences
Posted: 12 Sep 2003
This article provides a general summary of the rules and exceptions relating to the termination of a partnership for federal income tax purposes. If taxpayers are aware of the triggering events, Kennard explains, they may avoid the potential adverse consequences associated with a transaction that could result in a termination of the partnership. Alternatively, he notes, some taxpayers may desire a termination of the partnership in cases in which the termination would have beneficial federal income tax consequences.
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