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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: THAI DUC TRAN who wrote (844)	3/30/1998 9:18:00 PM
From: Taxboy	Respond to of 5810

Sounds like you are getting hit with phantom income, in other words, income is allocated to you pursuant to the terms of the partnership agreement, but the GP is deciding not to distribute cash (or maybe there is no cash available for distribution) to offset the income. Why don't you ask the GP to explaining the cash allocation provisions, or post that portion of the agreement. It is possilble that you could get enough partners pissed so that an amendment can be made to allow for cash distributions. Otherwise, maybe you can get out of this by seling to the GP (assuming he will buy you out). This problem happens alot in real estate deals where the lender gets all the cash available for distribution and none is left for the partners, even though the partnership has a book profit.