partnership loss closing business

[michele]

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

[George4Tacks]

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 "

[michele]

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