nycpa76
Level 1
04-13-2021
06:34 PM
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Partner A sells 5% of his partnership Profit and loss interest to partner B for $100 ( No hot assets at the time of sale).
How is this transaction reflected on the books of the partnership, if at all?
Thank you
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sjrcpa
Level 15
04-13-2021
06:37 PM
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Mostly it's not. Seller's proportionate share of capital sold gets transferred to buyer's capital account. Seller's ownership % on K-1 get changed.
The more I know the more I don’t know.
nycpa76
Level 1
05-09-2021
07:34 PM
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Would the change be included in Schedule L and a contribution and distribution in M-2?
sjrcpa
Level 15
05-10-2021
08:29 AM
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Increase and decrease on M-2, not contribution and distribution.
The more I know the more I don’t know.
