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Discussion:COD Income?

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Discussion Forum Index --> Tax Questions --> COD Income?


Thisisace (talk|edits) said:

13 May 2014
An operating agreement provides an investor with a preferred interest (gets set internal rate of return and preference for distributions, but doesn't share in appreciation of value). If we assume that the investor is treated as a creditor and not as a partner, and the partnership seeks to retroactively cancel the preferred interest holder (further assume there have been no previous distributions of interest income to the investor), is this considered COD income to the partnership?

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