User talk:Bjwattelet
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Technical Termination of Partnership Tax Basis Allocation}} I have a situation of 6 partners, 2 redeemmed their shares of 51% and 11.25 at the same time causing a technical termination.
- 1 received 651,320 for 51% and #2 received 170,000 for 11.25%. The remaining partnership members signed a recourse loan for the $651,320 and used proceeds from the company to pay #2. Leaving the 4 remaining partners with 30, 30, 30, and 10%. How do I allocate their tax basis? Then remaining partners 3&4 are bought out right for $75,000 each for their 30% interests. I allocated 30% of 170,000 and 30% of the 651,320 to each leaving partners and then recaptured the liability relief at termination. Am I thinking correctly?
