One of my annual tax clients sold his interest in his partnership to someone else. The problem is instead of selling his interest back to the partnership and having the partnership then sell it to the new partnership he sold it directly to the new partner. The new partner is paying the old partner the payments and nothing is being run through the business. I am not sure how to record this sale since nothing was ran through the business. Any thoughts?
Also the new partner wants me to do her taxes and I'm not sure how to even record that on her end.
I have never had a client not consult me on how to do a business interest sale. This new partner is a do it yourself kind of person if you know what I mean.
