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Business & farm
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.
Also keep in mind the date of replies, as tax law changes.
‎April 13, 2025
2:08 PM
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