Answered: Re: "Treasury Stock" in a partnership

SweetLeaf · ‎05-16-2022

A partnership that I'm working on had a few partners sell their interest and part of that interest was sold back to the partnership. Is this allowed? Doesn't it need to flow thru to something?

PhoebeRoberts · ‎05-16-2022

The leaving partner's remaining capital account gets distributed among the remaining partners. (IRC 704 presumably tells you how; I don't know off the top of my head.) This is one of the reasons that capital accounts don't represent outside basis.

View solution in original post

PhoebeRoberts · ‎05-16-2022

The leaving partner's remaining capital account gets distributed among the remaining partners. (IRC 704 presumably tells you how; I don't know off the top of my head.) This is one of the reasons that capital accounts don't represent outside basis.

SweetLeaf · ‎05-16-2022

Thank you so much for your insight! I'll take a look at the rules

"Treasury Stock" in a partnership

©1997-2024 Intuit, Inc. All rights reserved.

Intuit, QuickBooks, QB, TurboTax, and Mint are registered trademarks of Intuit, Inc. Terms and conditions, features, support, pricing and service options subject to change without notice.

By accessing and using this page you agree to the Terms and Conditions.