Hi Everyone first post here. I'm looking to acquire the interest in a RD Senior Affordable Housing project. The project is owned by a group of General Partners who are also the Limited Partners. It was first placed into service in 1990. I trying to understand what tax liabilities the partnership might be facing if they sign their GP interest and eventually their LP interest over to my entity. I know the building was built for about $775,000 and they currently have a RD mortgage for $680,000. They have taken about $500,000 in depreciation expenses and they currently have a negative capital account for the partnership totaling around $500,000. If my entity acquires the GP interest, I know we work with RD to assign the loan over to us and I'm looking to acquire the property in addition to the mortgage assignment of about $1000/unit, so $24,000. I'm wondering if anyone knows with the numbers given, what tax liability the current partners would have. I ask, because the current GP I'm speaking to, said he isn't interested in selling if he is going to be facing a large exit tax burden...I'm hoping to get some info I can share with him that might motivate him to sell. Thanks for any help.
