Where would you start?
One year a partnership had 3 partners. One 80%/two 10%. One of the 10% partners had a guaranteed payment and in addition took a $6000 distribution creating a negative capital account for him. The other two partners had positive capital accounts.
The next year there were two partners One 90%/one 10%. Nothing official was done, just one partner left the area.
I've been reading about retiring partners, but no payment was made to buy out the one that left.
What happens to the captial account? All that's left in it is the remaining value of assets. Can I just split it up accordingly?
One year a partnership had 3 partners. One 80%/two 10%. One of the 10% partners had a guaranteed payment and in addition took a $6000 distribution creating a negative capital account for him. The other two partners had positive capital accounts.
The next year there were two partners One 90%/one 10%. Nothing official was done, just one partner left the area.
I've been reading about retiring partners, but no payment was made to buy out the one that left.
What happens to the captial account? All that's left in it is the remaining value of assets. Can I just split it up accordingly?
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