Читать книгу Taxation Essentials of LLCs and Partnerships - Larry Tunnell - Страница 9

Last year, Marge invested $10,000 as a limited partner in an oil and gas drilling partnership. The general partner of the partnership was Ted, a business acquaintance of Marge's. Early this year, a mishap on the drilling site caused a fire, which eventually spread to thousands of acres, causing significant losses of livestock and some farm and ranch buildings in the area. The damages resulted in lawsuits against the partnership. Unfortunately, the well being drilled by the partnership turned out to be dry, and the partnership did not have sufficient assets to satisfy the damage assessment resulting from the lawsuit. Although Marge will lose her entire $10,000 investment in the partnership, as a limited partner she has no personal responsibility for the damages awarded against the partnership. In contrast, Ted, the general partner, is personally responsible for the outstanding debts of the partnership. Therefore, in addition to any capital he invested directly in the partnership, Ted will be liable to the farmers and ranchers whose livestock and buildings were lost in the fire started at the drill site.