clacourte1
Level 3
03-09-2023
08:33 PM
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Hello,
I have a new client who bought out his partner last year. I've entered the info in the change of ownership section, but I'm wondering what other steps need to be taken or what forms need to be filed with the partnership return? Thanks!
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sjrcpa
Level 15
03-09-2023
08:42 PM
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Mark it final. Enter the short year dates if the buyout took place before 12/31/22 .
Report the rest of the year activity on remaining owner's 1040 Sch C or E as appropriate.
The more I know the more I don’t know.
clacourte1
Level 3
03-09-2023
09:36 PM
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Ok, thanks very much.
Do you know if I need to file form 8308 if he purchased his partner's ownership interest with money from the business?
sjrcpa
Level 15
03-13-2023
12:56 PM
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Yes if there are any assets that would give rise to ordinary income.
The more I know the more I don’t know.
