Redemptions of Partnership and LLC Interests: Tax Treatment | Practical Law

Redemptions of Partnership and LLC Interests: Tax Treatment | Practical Law

An overview of the tax rules that apply to redemptions of partnership and LLC interests. This Note discusses the general partnership distribution rules, the Section 736 characterization rules, the Section 751(b) hot asset rules, partnership basis adjustments, and the key differences in the tax treatment of a redemption and sale of a partnership interest.

Redemptions of Partnership and LLC Interests: Tax Treatment

Practical Law Practice Note w-026-3038 (Approx. 19 pages)

Redemptions of Partnership and LLC Interests: Tax Treatment

by Practical Law Corporate & Securities
MaintainedUSA (National/Federal)
An overview of the tax rules that apply to redemptions of partnership and LLC interests. This Note discusses the general partnership distribution rules, the Section 736 characterization rules, the Section 751(b) hot asset rules, partnership basis adjustments, and the key differences in the tax treatment of a redemption and sale of a partnership interest.