Family Limited Partnership You May See Discussed By Joe Mastriano
Family Limited Partnership Explained And How It May Apply To You.
Despite the Tax Reform Act of 1986 enactment concerning the taxpayers’ investment income tax shelters, you may still find an alternative way of shifting your income to your lower bracket family members.
Family Limited Partnership Asset Protection
The Family Limited Partnership allows you to transfer a significant amount of income to your dependents. As an individual business owner, you may be giving or selling interest, to your family members, considered limited partners. Thus, you remain in control of your money and this will help you reduce your income taxes.
Family Limited Partnership Agreement
According to the family limited partnership agreement, the children need to pay income taxes on any capital gain from investments in the partnership. The parents will still have the right to control these assets and decide the timing of distributions from this family partnership.