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I am a general partner of a llimited partnership. Do the…

I am a general partner...
I am a general partner of a llimited partnership. Do the limited partners recognize unrealized gains for 2017.
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Answered in 36 minutes by:
3/14/2018
Lev
Lev, Tax Advisor
Category: Tax
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An unrealized gain or loss is also called a paper profit or paper loss,

For instance - when the partnership owns the building and the value of that building is appreciated - that is unrealized gain.

That is not actual gain, but a potential.

That gain will be realized if for instance the building is sold.

When realized - the gain may be also recognized for tax purposes Or may be partially recognized (for instance when sold on installment agreement) or not recognized (when section 1031 like-kind exchange is used)

However unrealized gains are rare recognized for income tax purposes.

In most situation they are not recognized for either limited or genera partners.

Lev
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