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What is my share of debt?

Alan-Ford
Level 1

Hi everyone,

I apologize if I am posting this in the wrong place. And I hope some of you are still awake and can help me figure out something that's probably clear as day to you. My business partner and I have an LLC and I am withdrawing from it. The LLC has a $10K line of credit balance, and $8K debt on the credit card, for a total of $18K.

My partner's position in the firm is negative at -$16K. My position is positive at $6K, based on invoices I have never been paid. We have assets (computers and other small gear) valued at roughly $3K.

Now that I am withdrawing, we're trying to divide the debt. Based on the numbers above, what is my share of the LLC's debt?

I come up with the number of $4K, excluding the value of our assets. Am I right?

Thanks a lot!

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Accepted Solutions
George4Tacks
Level 15

I believe you are correct. You are in the wrong place. I doubt you use Proseries. If I am wrong, I apologize, but suggest you speak with your PAID tax professional to get an answer based upon ALL of the facts and circumstances of this situation. 


Here's wishing you many Happy Returns

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4 Comments 4
George4Tacks
Level 15

I believe you are correct. You are in the wrong place. I doubt you use Proseries. If I am wrong, I apologize, but suggest you speak with your PAID tax professional to get an answer based upon ALL of the facts and circumstances of this situation. 


Here's wishing you many Happy Returns
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IRonMaN
Level 15

I think you are mushing equity and debt together, but it really doesn't matter what anybody here says your share of the debt is.  I think you and your soon to be ex-partner need to come to a mutual agreement on what kind of dollars it's going to take to allow you walk away from the partnership.


Slava Ukraini!
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abctax55
Level 15

In addition to talking to a professional tax, a consult with an attorney might be a good idea.

"Tax software is no substitute for a professional tax preparer"
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qbteachmt
Level 15

This statement doesn't really make sense to me: "My position is positive at $6K, based on invoices I have never been paid."

You don't invoice your own entity.


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"Level Up" is a gaming function, not a real life function.
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