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Ezra Dyckman, a member of Roberts & Holland, and Seth Hagen, an associate at the firm, write that despite the benefits offered by using a Series LLC, thus far, their use in the real estate industry has been scarce. A major factor contributing to the disuse of the Series LLC has been the uncertainty for federal tax purposes as to how the entity will be treated--as one entity or several. Although the question has not yet been firmly settled, the IRS recently published a private letter ruling providing guidance on this issue.
August 27, 2008 at 12:00 AM
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