You need to meet with a tax professional as there are too many questions that require understanding the specific facts of the transaction:
- "I am part of a firm" - be prepared to provide guidance on the entity type
- If the entity type is a pass-through entity, you will need to know your tax basis in the investment
- "Recapitalization" - What exactly does this mean?
- This typically means adjustments between equity and debt
- Your transaction, albeit limited facts, doesn't sound like a recapitalization
- Being "owned by Private Equity" means your firm was a portfolio company of the PE.
- Indicating taking out part of the "gain" in cash seems to mean there was a part sale
- Based on the limited facts, you indicate "rolled over to the new PE".
- Once again, there appears to be some type of a sale transaction of your firm
- This needs a lot more detail and a forum such as this is certainly not conducive to addressing a transaction of this nature.....just too many questions.
- Having said all of the above, with only the limited facts, I would venture to say you most likely need to complete form 7217 with the help of a tax professional.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
