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I have a partnership in which the partners have the

following share A 10%, B...
I have a partnership in which the partners have the following share A 10%, B 40%, C 50%. In 2017, B sold 40% share to C. Now A has 10% and C has 90%. How do I report this on the partnership tax return?
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Answered in 2 minutes by:
2/27/2018
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,314
Experience: Adjunct Professor
Verified

Hey! I'm Carter, I'm a CPA and can help you out with this.

The main part you need to do is update the K-1s. You'll update the ownership percentages to reflect the new partnership ownership percentages.

If the partnership had any "hot assets" (these are inventory or unrealized receivables) then you also need to file Form 8308.

The sale and all that will be reported by the partner that sold his shares on his Form 1040.

Let me know if you need anything else. If not, please leave a rating. Thanks!

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Hey! Just wanted to follow up to see if you need anything else. If not, please leave a rating so I can get credit for helping you out. Thanks!

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Customer reply replied 5 months ago
Thanks for your response. There was cash exchanged for the interest in partnership (none of the assets you mentioned). Does that change your answer?
Nope, you're fine then!
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,314
Experience: Adjunct Professor
Verified
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