Re: Reorganization?

[Kim Malo <kmalo19@idt.net>]

At 10:58 AM 4/21/98 -0400, Jeremy Warren wrote:
>Can someone shed some light on this for me?  It sounds like they are
>reorganizing in order to be taxed.  What would happen if they didn't
>reorganize?  (Kim, Theresa, anyone with some business sense)
>
>Jeremy


Limited partnerships aren't my top area of expertise, but what it says it
that they are re-organizing to structure HOW they want to be taxed when the
initial exemption from corporate taxes (dunno why they were initially
exempt) expires. So more like they're going to be taxed anyways and they're
deciding how. I know there are diffenceses in how taxes apply to
corporations and limited partnersips. I wonder if part of the reason for why
they're doing it this way has to do with how they plan to allocate costs and
depreciation associated with capital projects like the new practice
facility. Most of the LPs I know about get maximum benefit on that sort of
thing from R&D type stuff like exploratory mineral wells, and I don't
believe they wouldn be able to categorize the practice center that way. 

-Kim
>
>* BOSTON CELTICS INC, the general partner of Boston Celtics LP,
>  said late Friday that it has approved a plan to reorganize into a
>  partnership taxable as a corporation and private partnership,
>  prior to the expiration of the partnership's exemption from
>  corporate income tax. The primary objective of the reorganization
>  is to address taxation issues, while permitting existing public
>  shareholders of Boston Celtics L.P. unites to maintain a
>  proportionate investment in the basketball team and the
>  partnership's other assets in either a public or private entity.
>  (Reuters 05:13 PM ET 04/17/98) For the full text story, see
>  http://www.infobeat.com/stories/cgi/story.cgi?id=2553777853-757
>
>
>
Kim Malo
kmalo19@idt.net