abctax55
Level 15
12-31-2019
05:13 PM
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The simple version is:
Old partner (selling partner) has a gain or maybe a loss on the $ 40,000 received.
New partner (buying partner) has $ 40,000 *outside basis*.
The partnership reflects the change in ownership by issuing part year K-1 to the old partner & the new partner (unless all this happens tonight at the stroke of midnight...)
HumanKind... Be Both