Limited partnerships try to avoid recapture because:
A)it turns potential capital gains into current taxable income
B)it may subject the partnership to the add-on tax
C)it increases the risk of a tax audit
D)it always increases the investor's tax bracket

Question

Quizplus · Accepted Answer

it turns potential capital gains into current taxable income. Recapture is taxed as ordinary income, not capital gain. The other choices are not true.

Limited Partnerships Try to Avoid Recapture Because