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Partnership Interests
This gift is for you if...
- You hold an interest in a real estate, oil and gas, or other investment partnership.
- You invested to share in the partnership's initial tax losses, which have now ended.
- The partnership no longer fits your investment strategy, or you do not want to receive taxable income from it.
- The partnership agreement permits you to transfer your interest to third parties like us.
- Your partnership interest is not encumbered by debt, and we will not be called on to make any future contributions to or for the partnership.
Gifts of transferable partnership interests – primarily in real estate or oil and gas ventures – can benefit both you and us. Gifts are usually made to us outright, but in some cases may be used to fund a life-income gift such as a unitrust.
Donors who invested in a partnership to gain the tax losses generated in its early years may look to donate their interest once income starts flowing to the partners.
Your charitable deduction will be based on the difference between your share of the fair market value of the partnership and your share of its liabilities.
Both you and we must take some preliminary steps before you transfer partnership interests. You should first determine if the partnership allows shares to be transferred.
For our part, because gifts of partnership interests involve Children's in issues of marketability, taxation, liability, and the potential of later assessments by the partnership, we must first review and approve any transfer.
If you are considering a gift of a partnership interest, first consult with your attorney and accountant. We can work with them to review the benefits of a gift.
For More Information
Complete the personal illustration form or contact us so that we can assist you through every step of the process.
This is not professional tax or legal advice. Donors must consult their tax and legal advisors regarding their specific situation.