How to Relinquish ownership of an LP investment

Forum|Forum|3 years ago
March 14, 2023
1 reply
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I have a small investment in the General Partner of an old limited partnership investment (circa 2003). It is my only remaining investment that results in a K-1 and this requires me to go on extension every year since the K-1 is not available until October usually. The K-1 typically does not have any figures higher than $10 yet they claIm that the fund will remain open for at least 2 more years. I am really done with it. Is there a way that I can officially advise the investment manager that I relinquish ownership so that I do not have to fuss with the K-1 for these small amounts and continually go on extension? Please let me know if it's possible and if so, how to do this. Thank you.

Best answer by RobertB4444

Unfortunately, we are a tax forum, and you really need legal advice here. If you have a partnership agreement from when you joined the LP you should read over that. Other than that, you should consult an attorney.

@ebomze2254

RobertB4444Answer

@ebomze2254

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ebomze2254Author

That is helpful but this is a small balance not worth engaging an attorney. There could well be some participants on here that have encountered this situation and could at least point me in the right direction or explain how this result was achieved in their prior experiences.

Also, technically it is a tax question since there are potential tax implications and/or rules that could prohibit this type of transaction and of course I would like to see if anyone on this board can offer either experiences or advice.