Reply To: Investment in an LLP

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Dear All,

I talk to our CPA and also with another investor who is a partner in the LLP. Following are their comments:

Our CPA: CPA wants to treat it as a passive income (increase in NAV) or passive loss (decrease in NAV) every year because there is no federal ID for the LLP as it is based in India

Another option suggested by an LLP partner living in the USA: “We are reporting as interest income and ordinary dividends. For LLP federal ID, we are saying that it is a foreign partnership and hence we are not filling up the EIN/federal ID.” Does this approach about federal ID valid?

The LLP is registered in India and has a “identifier” number issued by the tax authorities.

Please provide your comments and suggestions. Regards, Dabu.