Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Partner change in ownership

JLCPS156
Level 1

Partner B sells ownership to Partner C.  Where do I report the sale of Partnership interest on the K1, if so what screen am I entering?   

Labels (1)
0 Cheers
7 Replies 7
sjrcpa
Level 15

The sale was outside the partnership so does not get reported by the partnership nor on K-1s.

However, you may like to footnote the transaction on B's K-1. B's ending capital account should be zero and his K-1 gets marked Final. 

C's capital account will increase by the amount of B's ending capital account immediately before the transaction. C's outside basis is what he paid B for the partnership interest.


ex-AllStar
JLCPS156
Level 1

What screen do I mark a partner as final K1?

0 Cheers
sjrcpa
Level 15

32.1


ex-AllStar
JLCPS156
Level 1

What screen am I adjusting the capital accounts that will flow properly to the capital account analysis 

0 Cheers
sjrcpa
Level 15

29


ex-AllStar
hrrisoncpa
Level 3

May I add a related question, please?  I have a situation where  Partner A purchased the interests of a few other partners.  I see where screen 29 can be used to transfer the outgoing partners' Capital Accounts to Partner A.  However, I know I need to increase Partner A's outside basis by the amount he paid for the other partners' interests.  I don't see anyplace in Screen 9.2 that allows for this type of increase to outside basis.  Is here some other place to adjust the outside basis?

0 Cheers
qbteachmt
Level 15

Please note that @hrrisoncpa has also asked this as their own topic, here:

https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/adding-outside-basis-when...

No need to keep asking, and is being answered on that topic.

*******************************
"Level Up" is a gaming function, not a real life function.
0 Cheers