Awesome video! Quick question, when pref is based on unreturned capital, and considered a guaranteed payment, it's deductible to the entity right? And when the pref is considered a return of capital (not return ON capital) it's a distribution and not deductible to the entity? Thanks again!
@TheRealEstateCPA
3 жыл бұрын
A GP is deductible to the entity. And a pref distribution is a return OF capital (since it's just a preference for who gets distributed capital first)... a pref profit allocation will create taxable income.
@mattbontrager
3 жыл бұрын
Also how would it be taxed if the pref was based on performance?
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