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Family Limited Partnerships (FLPs): Definition & Tax Implications

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What discount is applicable to a gift of an FLP interest?

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1. Of the following business types, which could be a Family Limited Partnership (FLP)?

2. An FLP requires at least _____ individuals to control the company. They are called _____.

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About This Quiz & Worksheet

This set of quiz/worksheet questions lets you test your knowledge of Family Limited Partnerships (FLPs). See what you know about this type of business and its benefits.

Quiz & Worksheet Goals

Use these questions to find out what you know about:

  • The minimum number of partners needed to control an FLP
  • Examples of business types that could be FLPs
  • The tax benefits of an FLP

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the material, such as the applicable discounts for gifts of FLP interest
  • Information recall - access the knowledge you've gained regarding the tax benefits of an FLP
  • Knowledge application - use your knowledge to answer questions about what types of businesses can be FLPs and how many partners are required to set one up

Additional Learning

To get a better understanding of this type of business ownership, review the lesson titled Family Limited Partnerships (FLPs): Definition & Tax Implications. This lesson explains:

  • The liability protection of this business type
  • Examples of FLP tax liability
  • The use of exclusion amounts to steadily transfer ownership interest
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