Flow-Through LPs
How Flow-Through LPs Work
The advantages of the Limited Partnership
A "Limited Partnership" is a kind of legal structure
for a fund. Investors purchase units in the Limited
Partnership. Companies issue flow-through shares
to the Limited Partnership. Companies renounce
expense deductions to the Investors in the Limited
Partnership. A Limited Partnership provides a
tax write-off in the year of investment of a set
percentage of the total investment.
Within 2 years:
Subject to prevailing legislation,
investors may be offered liquidity through a tax deferred exchange into a mutual fund.
Limited Partners become unitholders in the
mutual fund.
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