Institutional Equity Participants Fret
INSTITUTIONAL EQUITY PARTICIPANTS FRET ABOUT whether they give states a nexus to tax them by investing as a limited partner in a project.
The answer in Georgia at least is no. A Fulton County superior court said recently that two Tennessee residents did not become subject to income taxes by holding limited partner interests in a Georgia partnership. The court said the partnership was a separate entity from its partners. The partnership was formed to invest in securities traded on national stock markets. The general partners made all the investment decisions. The limited partners were barred from participating in management.