WYOMING Limited Partnership.
I run a limited partnership that typically only accepts cash contributions. I am currently in a situation where the subscription of a real estate asset would be mutually benefitial to me, my partners, my investors, and the subscriber. I know with an LLC, an asset subscription can be completed and carried on the LLC books at the FMV or cost basis in the asset. Can the same be done for a limited partnership?
Suppose we have $1,000,000 in total contributions. My new investor subscribes an asset for which she paid $600,000. This would raise my total "base investment" to $1,600,000 and any profits would be distributed according to the pro rata share of each investor, giving my new investor a 37.5% interest in company profits. Please let me know if anyone has direct experience or knowledge, or knows of a resource to which I can refer to aid in the asnwering of my question.
Best regards.
I run a limited partnership that typically only accepts cash contributions. I am currently in a situation where the subscription of a real estate asset would be mutually benefitial to me, my partners, my investors, and the subscriber. I know with an LLC, an asset subscription can be completed and carried on the LLC books at the FMV or cost basis in the asset. Can the same be done for a limited partnership?
Suppose we have $1,000,000 in total contributions. My new investor subscribes an asset for which she paid $600,000. This would raise my total "base investment" to $1,600,000 and any profits would be distributed according to the pro rata share of each investor, giving my new investor a 37.5% interest in company profits. Please let me know if anyone has direct experience or knowledge, or knows of a resource to which I can refer to aid in the asnwering of my question.
Best regards.