In-Kind Unit Distribution for Promoter Interest

Advice, structuring and implementation of in-kind unit distributions in partial satisfaction of promote earned in mid-market development projects, including drafting tax allocation language and redrafting waterfall language to accommodate in-kind distributions as earned.  Discussion of tax aspects both upon allocations in year of distribution, phantom income potential from pay-down of leverage and future tax consequences from inventory characterization.  Our office has worked on numerous situations of this type with a variety of mid-market development firms.