Series 65: 4.5.5.1.2.3 Low-Risk DPPs

Taken from our Series 65 Online Guide

4.5.5.1.2.3  Low-Risk DPPs

These types of income programs provide income for investors right away and, thus, have the lowest risk and lowest potential return. They also have the largest tax consequences in the early years of the investment.

Real estate DPPs may invest in income programs. These usually involve existing properties that regularly produce income, such as an apartment complex already filled with renters.

Oil and gas DPPs may invest in an oil well that is already producing oil.

SUMMARY TABLE

Limited Partnership Advantages and Disadvantages

Advantages

Income generated from the partnership flows through to the partners, so there is no double taxation.

Partnership losses can be used to offset a partner’s passive income and, thus, provide a federal tax deduction for that partner.

Can invest in a

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