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SERVICES: FLP (Family Limited Partnership)

Summary of FLP Income Taxes

We assist partners of Family Limited Partnerships (“FLPs”) meet their tax filing requirements. FLPs are pretty much the same as Limitied Partnerships with most (if not all) of the partners being family members. FLPs can afford several benefits to families, if structured and maintained properly. Some of the key benefits are in the areas of income taxes, gift taxes, and estate taxes. We are experienced in the formation, use, and taxation of FLPs.

Assisting Family Limited Partnerships

For income tax purposes, FLPs are treated as any other partnership. As such, FLPs are required to file a partnership income tax return (IRS Form 1065). However, with many FLPs, the family partners are generally relaxed about strictly following the IRS’ requirements for partnerships and tend to make many mistakes. Some of these the mistakes can jeopardize the potential benefits of FLP and expose the family to considerable taxes, interest, and penalities. We help families to understand their responsibilities in running and maintaining their FLP. We assist the family members and FLP partners in the following ways:

  • We assist in the structuring and formation of family limited partnerships.
  • We train owners and partners in the operation and use of family limited partnerships.
  • We provide bookkeeping services to family limited partnerships.
  • We assist with tracking and keeping up with partners’ basis in the partnersip.
  • We assist with partners entering and leaving the family limited partnership.
  • We prepare FLP income tax returns.
  • We issue Schedule K-1′s (K-1′s) to partners in the family limited partnership.
  • We assist the individual partners with preparing their individual income tax returns.
  • We assist with dissolving and winding up a family limited partnerships.
  • We provide tax planning to FLPs and its partners.
  • For parents and grandparents who are passing on an assets or business, we assist the child heir(s) in making financial decision regarding the FLP’s holdings.
  • We work with and assist the family attorney in accomplishing specific objectives with the FLP.

For prices for our family limited partnership income tax servcies, please visit our price section.