Partner A sells 5% of his partnership Profit and loss interest to partner B for $100 ( No hot assets at the time of sale).
How is this transaction reflected on the books of the partnership, if at all?
Thank you
This discussion has been locked. No new contributions can be made. You may start a new discussion here
Mostly it's not. Seller's proportionate share of capital sold gets transferred to buyer's capital account. Seller's ownership % on K-1 get changed.
Would the change be included in Schedule L and a contribution and distribution in M-2?
Increase and decrease on M-2, not contribution and distribution.
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.
