Have a challenge for anyone. A partnership of 3 closed there business. 2 partners were always active - the 3rd - well - nothing. They would charge there products and before you knew it - got out of hand. Had 9 charge cards that the received 1099-C on. 3 of the charge card are in the business - federal id number. 4 of the other charge card each of the 2 partners took 2-3 a piece. Now with the partnership 1065 - do I report it on schedule D - since it was to buy product? Do I try to show that they closed the business with more debt than the assets or will that work on a partnership to see if it is insolvency.
The other 2 partners - since they took on the card themselves - some in the company name but they applied for it at the time in there name. Do I show it was a buisness and try to show that the credit card put them owing more than the assets? Do I fill out the 982 form for the individuals partners if they show they are insolvency?
Another part is since they closed - 1 of the partner has taken on the building payments and utilities - so show that as the UPI on the schedule E?
Wow - what a mess. Can anyone help.
The other 2 partners - since they took on the card themselves - some in the company name but they applied for it at the time in there name. Do I show it was a buisness and try to show that the credit card put them owing more than the assets? Do I fill out the 982 form for the individuals partners if they show they are insolvency?
Another part is since they closed - 1 of the partner has taken on the building payments and utilities - so show that as the UPI on the schedule E?
Wow - what a mess. Can anyone help.