Discussion:Partnership Dissolution w/installment note

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Discussion Forum Index --> Tax Questions --> Partnership Dissolution w/installment note

Janenni (talk|edits) said:

29 November 2005
What would be the tax implications for a general partnership that plans to sell it's sole remaining asset on an installment agreement? The GP has 3 partners, and the partners would like to dissolve the partnership and have the purchaser of the final asset make installment payments to each of the 3 partners.

DZCPA (talk|edits) said:

2 December 2005
I would dissolve partnership amd have each partner show the installment sale on their personal 1040 returns.

DZCPA (talk|edits) said:

2 December 2005
No tax implications until installment proceeds are received.

Solomon (talk|edits) said:

2 December 2005
On the final 1065 would forms 6252 and 4797 be included? That is, installment and business sale forms.

DZCPA (talk|edits) said:

4 December 2005
Use installment sale form showing the proceeds received during the final year. The business sale form should be used if the business is sold not dissolved.

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