A Foreign Partner Is Not Taxable On A Partnership Sale

By Steven Bortnick (August 2, 2017, 10:44 AM EDT) -- It is not uncommon for private equity and venture capital funds to invest in portfolio companies that are formed as partnerships or limited liability companies. These investments create certain problems for foreign limited partners (LPs) in the form of taxation on the income earned by these partnerships and, at least according to the Internal Revenue Service, U.S. taxation on the gain from the sale of such partnership interests....

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