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Level 1
December 7, 2019
Solved

When someone purchases a partnership interest with a negative capital account from a partner, does the new partner take on the old partners negative capital account?

  • December 7, 2019
  • 1 reply
  • 9 views

If no, how do you calculate the new partner's capital account?

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Best answer by sjrcpa

Yes. But the purchaser's basis starts with the amount of the purchase price.

1 reply

sjrcpa
sjrcpaAnswer
Level 15
December 7, 2019

Yes. But the purchaser's basis starts with the amount of the purchase price.

The more I know the more I don’t know.