TagLLC

Considering Making A Qualified Opportunity Zone Investment?

By:  Amanda Wilson

 

Qualified Opportunity Zones are a hot topic in the tax and business world, and are an opportunity that span into almost any business market.  I get questions about them daily.  If you are considering making an investment in property in a qualified opportunity zone, or are simply wondering what an opportunity zone is, I recently presented on this topic.  A copy of the presentation materials can be found here.

Now Is The Time To Review Your Tax Provisions

By:  Amanda Wilson

As tax season is underway, one important deadline is coming that should not be overlooked.  Tax law allows for partnership and LLC agreements to be amended retroactively to the first day of the prior year, provided the amendment is executed before the due date (without extensions) for the prior year’s tax return.

What does this mean for your agreements?  You should look at the tax provisions and see if there are any items that should be corrected.  For example, do the allocation provisions result in unintended consequences that you would like to correct?   Would you like to add a limited deficit restoration obligation so that one member or partner can utilize losses?   Or does your agreement provide for a tax matters partner, which is a concept that was replaced by a partnership representative (previously discussed here).  You should act quickly, though, as the deadline for executing any amendments for the 2018 tax year is March 15, 2019.

Partnerships – TMP Must Be a Partner

Magnifying Glass and TaxBy: Amanda Wilson

With April 15th rapidly approaching, I thought I would address a common question that I receive this time of year. Who can be the tax matters partner of a partnership?

The tax matters partner is the partner authorized to sign the partnership’s tax return and otherwise communicate with the IRS. In the case of a limited partnership, the tax matters partner is generally the general partner.

In the case of a limited liability company that is treated as a partnership for federal tax purposes, the issue becomes more complicated. A limited liability company is often managed by a manager, and the manager may or may not be a member of the limited liability company.   It is very common for the members to select the manager as the tax matters partner. However, this does not work if the manager is not a member of the limited liability company.  The tax matters partner must be a partner in the partnership or a member in the limited liability company.  So be careful this tax season and make sure that whoever is signing your partnership tax return is appropriately authorized to do so.

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