Q: CCC 15673(b) says an assignee is not obligated for liabilities unknown to the assignee at the time he became a partner.
What if an assignee never became a partner, just inherited an interest in a highly leveraged LP, the bank goes bankrupt, and assignee gets slammed with huge capital gains tax but without the actual gains (Phantom gains). Can he argue that the partner who owns the share underlying his interest must pay the cap gains tax? The interest holder did not know about the prior decades of tax-deferred distributions from second mortgages. The statute says that even if he were a LP, he would not be responsible for the tax debt he was not aware or informed of, so my feeling is that the interest holder should be even more protected from a Kryptonite K-1.
A: Your facts are vague and contradictory. You say you inherited the interest, and also you say you have a partner who assigned the interest to you. Which is it? More details are necessary to provide a professional analysis of your issue. The best first step is an Initial Consultation with an Attorney. You can read more about me, my credentials, awards, honors, testimonials, and media appearances/ publications on my law practice website. I practice law in CA, NY, MA, and DC in the following areas of law: Business & Contracts, Criminal Defense, Divorce & Child Custody, and Education Law. This answer does not constitute legal advice; make any predictions, guarantees, or warranties; or create any Attorney-Client relationship.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.