HOW DO I TRANSFER A PARTNERSHIP INTEREST

[Theresa59]

i HAVE COMPLETED THE FORMS 8308 BUT NOT WORKING

[dascpa]

Are you talking about the reporting or within ProSeries how to handle the K-1's?

[Theresa59]

Within ProSeries.  The only thing that anyone at ProSeries could tell me was to use form 8308.  One partner transferred her interest to 3 other partners.  It was suppose to happen at the end of the year but I never could figure out how to make that happen, so the transferor partner did not get any allocation of operations for 2025.  If you could tell me how to make that happen in the software that would be great.

thanks so much

[dascpa]

Did they sell their share or did they assign ownership (gifting)?

If I sold my share to you this has nothing to do with the entity. It's betwen you and me. I may have capital gain or loss. You will have outside basis different than inside basis.

There are times in which a revaluation of the entity is required.

If the above is what happened then within ProSeries you need to end my ownership and add in the new owners. You do this via the K-1 Worksheet and the Addl K-1 Info worksheet. Then did you do accounting yo date of sale or are you going to use Weighted Average method. This is done on the Addl K-1 Info worksheet

[sjrcpa]

8308 is for when a partnership interest is sold and there are hot assets.

Don't think it will reallocate anything between partners in the software.

But it may be needed.

[Theresa59]

No she didn't sell it.  She wanted out of the partnership.  Just trying to transfer it to 3 other partners.

Thank you!

[Theresa59]

Thank you for your answer.  It's just a transfer.  Looks  like the guy at ProSeries told me wrong.  I will need to go back and eliminate the 8308 and do as you said.

[sjrcpa]

What does "just a transfer" mean? She gave her interest to the other 3?

She abandoned it, and consequently the other 3's ownership interests increased?