csanchez
Level 4
03-16-2021
04:38 PM
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S- Corp, 2 partners 50/50. One buys out the other effective 06/30/20. I entered info on Ownership Percentage Worksheet. It indicates that the amounts will be allocated for the whole year 25/75 with the final k-1 for the partner bought out. Is this accurate? Any guidance is appreciated.
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sjrcpa
Level 15
03-16-2021
04:49 PM
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Yes per share per day allocation applies unless they made an election to cut off the books.
Ex-AllStar
csanchez
Level 4
03-16-2021
04:57 PM
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Thank you. I will check with my client.
csanchez
Level 4
03-16-2021
06:50 PM
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Dissolution agreement indicates dissolved 06/30/20. The Buyer assumes all liabilities & financial accountabilities as of this date. However, one portion indicates Buyer will have 100% ownership once Seller is fully paid. That date is 08/14/20. So which date do I use for a partial year 1120-S?
