Navigating the tax implications of partnership structures can be challenging for many organizations. With constantly evolving legal guidance and increasingly complex treasury regulations, partnership tax related issues can expose businesses to significant business and tax risks.
At KPMG, our Partnership Transactions Group offers expert guidance to help organizations make informed and value-generating tax-focused decisions for all types of partnership transactions. Our professionals can help you analyze the tax consequences of various terms within your partnership agreements, compare the expected tax ramifications of various transaction alternatives, model alternative tax allocation methods for contributed property, and provide actionable insights into the potential consequences of optional tax basis adjustments and other key considerations.
From initial planning and idea generation to post-closing operations, our professionals support your business through the entire transaction process to help ensure your partnership transactions are structured for minimum risk and maximum tax efficiency.
Our services are ideal for businesses that are:
- Considering acquiring or disposing of assets
- Contemplating entering into a joint venture
- Considering a transaction, such as a merger, that would involve transferring partnership interests
- Uncertain if its current organizational structure is still appropriate from both a business and tax perspective
- Considering any transactions – including working out debt, borrowing, making distributions, merging, or selling – around a new or existing partnership
- Facing the possibility of any partners exploring exiting the partnership or reducing the sizes of their interests
- Considering alternative tools to provide incentive compensation to key service providers
- Wondering if its business and tax objectives be achieved by combining certain operations in a partnership
- Seeking new sources of capital that would make a partnership interest attractive to potential investors
- Taxed as a partnership or disregarded entity and considering an initial public offering.
