Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Question reporting exchange of partnership interests. Client owns 50% of 2 partnerships with same partner in both. Client exchanged 50% of 1 for the other making him 100%

Jason1971
Level 1

Client exchanged 50% of his interest in Partnership 1 for 50% of his partner's interest in Partnership 2 making him no longer a partner in Partnership 1 but making him 100% owner in Partnership 2. How do I report this? Do I file a Form 8824 Like-Kind Exchange? 

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Best Answer

Accepted Solutions
PhoebeRoberts
Level 11
Level 11

As a sale and purchase, because for tax purposes it's a sale and purchase.

View solution in original post

0 Cheers
3 Comments 3
PhoebeRoberts
Level 11
Level 11

As a sale and purchase, because for tax purposes it's a sale and purchase.

0 Cheers
abctax55
Level 15

Do I file a Form 8824 Like-Kind Exchange? 

The only thing that qualifies for § 1031 exchanges since TCJA of 2017 is real estate.  

And that *partnership* that ended up with just one partner is no longer a *partnership*.  It's possible that final return should have been filed a while ago.

HumanKind... Be Both
0 Cheers
George4Tacks
Level 15

This also sounds like a final return for at least one of the partnerships. "making him 100%" - a partnership must have at least 2 partners, not a sole proprietor. 


Answers are easy. Questions are hard!
0 Cheers