I have a partnership (3 partners) where 2 partners were bought out effective 1/1/06, so they will not be participating in any income and expenses for 2006. Remaining 1 partner and new partner now 50/50. So income/expenses will be a breeze!
Question is for K-1 and what do I need to watch out for in calculating the 2 partners that sold their share for the gain/loss on the sale of their interest. Part is sale of inventory, cash, then the rest is depreciable assets of store equipment. depreciable building and a land value of the real estate.
I have not had the pleasure of doing this before!
Thanks
Sandy
Question is for K-1 and what do I need to watch out for in calculating the 2 partners that sold their share for the gain/loss on the sale of their interest. Part is sale of inventory, cash, then the rest is depreciable assets of store equipment. depreciable building and a land value of the real estate.
I have not had the pleasure of doing this before!
Thanks
Sandy