next »

[spork]

This is probably a very specific question, but maybe clean or pry will come along with an answer.

I inherited a .25 share in a real estate development partnership from my father.  The last two years I've received a distribution of $250 per year.  This year's K-1 shows my ending capital account as $2600.

According to the partnership's managing owner, who is ~ 80 years old at this point, the partnership has one large bond yet to be retired, and the state requires three homes on a street before it will release a bond (I'm not quite sure what retire/release refers to, if in fact they are the same thing).  There have been no homes built in the development for the last 2 years.  Given current economic conditions, I doubt any will be built for at least another few years.

My tax liability is supposedly zero -- the managing owner says that partners no longer own any property in the partnership, all funds in the partnership have been taxed, and the partnership receives no taxable income.

The managing owner says that he has a "possible way to liguidize (sic)" my share in the partnership (this info was mailed to all partners).  Should I opt for this?  I'm assuming that if I hang onto the .25 share, I'll receive $250 distributions and pay my share of business expenses (about $30 per year, I'm guessing for the accountant and whatnot) until my capital account hits zero.

[prytania3]

Sorry, Spork, on this I am totally clueless. Maybe Clean will have some ideas.

[clean]

Wish I could help.

If you can trust the accounting, there is only $2600 to gain.  It does not seem that it is really worth asking an attorney.

OTOH, do you have something like an Employee Assistance program where you work?  Perhaps a free visit with an attorney or accountant may be helpful.