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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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4 people are in a partnership equal partners, our holding is

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4 people are in a partnership equal partners, our holding is real estate which we have sold, we held this property for 3 years, 2 of the partners have put the majority of the monthly overhead into the partnership for upkeep on property..to equalize capitol accounts do you go back to day one and reimburse each partner their contribution before distributing any proceeds?

MyVirtualCPA :

Thank you for your question, and thanks for using JustAnswer.com

MyVirtualCPA :

You would not have to reimburse the partners for anything - the partners can have different basis in the partnership based on their contributions

Customer:

So I loose the 9100.00 dollars I have spent out of my pocket making repairs?

MyVirtualCPA :

If you wish to be reimbursed you can be, but it's not required

MyVirtualCPA :

You won't lose those funds

Customer:

I do not understand?? If I have 4 equal partners..but they have not contributed equally...I have 50,000 to distribute....I would think the partners who have contributed more should get a larger % of these proceeds than the partner who has contributed nothing

MyVirtualCPA :

What you could do is reimburse the partners who contributed to the expenses first from the distribution, and then take what's left and split it equally

Customer:

Thank you. I would reimburse expenses from day one of partnership correct?

MyVirtualCPA :

Yes.

Customer:

Thank you I appreciate your time and patience.

MyVirtualCPA :

No problem. It was my pleasure

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