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I have 50/50 partners that did not have a partnership agreement. Only one partner put up the capital.
They have had the business about 2 years and are closing it generating a $20,000 loss. Is the one partner entitled to a portion of the loss since he did not put up anything and there was no agreement.
thx
Michele
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You partnership probably has a least a verbal partnership agreement. Look at the partner basis schedule to help you determine if "the one partner entitled to a portion of the loss since he did not put up anything "
Answers are easy. Questions are hard!
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He did not have any basis so I would assume he would not be entitled to the loss. The business lost money both years it was in business and and he had no money in the business. The k-1 he brought in was prepared somewhere else.
thx
Michele
