The partnership K-1 footnote seems to clearly be telling me that I don't have to worry about the STCG treatment for less than three year gain, but how do I know for sure?
Footnote says:
Below is your allocable share of LTCGs that are not derived from an API that the partnership held directly or indirectly and are not subject to Section 1061.
Seems like it's LTCG treatment. I know this is a passive investment for my client. No services provided by him.
But why create a footnote at all, if it doesn't apply? Do I need to inquire further?