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Peace on Earth and Goodwill to All Ye on this Board!

Since today is December 24th, I will wish everyone a very Merry Christmas! Next week, I'll send wishes for 2021. We'll keep the two separate.

Stay safe and enjoy each other...

Merry Christmas, everyone!

In the past, a taxpayer could take their last paystub to H&R Block to qualify for a RAL or RAC. However, their return would not be e-filed until they returned with their W-2. (Full disclosure: I worked in a Premium office and don't think I ever did a RAL or RAC.) PS: After leaving Block, I make sure that I charge MORE than Block. I still do NOT do RALs or RACs or any other bank products.

H & R Blocks advertises that people can bring their last paystub... I guess they use some sort of RALs. I guess the difference between H&R block and myself is that they are running a business like a business and make enough money to pay their executives much more money than what I make and they don't even prepare a return. In my case, I don't make enough money to pay someone to answer my phones. Perception is key and people rather pay double to H & R and the person who will prepare their taxes doesn't even know half of what I know.

Pacun, thanks for delving into this. I'll try to define in answer to you. Partner C put down $25K from his pocket for 25% of the shares, correct? There is no evidence that Partner C put down $25K from his pocket. He may have put in any amount, or may have put in nothing and this could have happened several years ago. The only facts are that his basis prior to default was $27,500 with loans attributable to $37,500. The bank will not issue him a 1099-C because the loan was repaid to the bank. Not stated that the loan was repaid in full, only that the partners were approached and C could not pay anything. Technically he just lost 15% of his interest on the partnership. He only has 10% of interest and this is the way the new interests should be stated: You could be right. Don't know that his default (with no other contributing circumstances) disqualifies him from being a partner or reduces his stated interest unless he is forced out by articles of partnership agreement. The question only involves his suddenly "overdrawn" basis and how it is handled on his personal return. Actually, there is also movement in the partners' capital accounts which is different from basis. This is heavy stuff (especially for people like myself to understand) so I have a feeble mind when thinking about it. Thank you, Pacun.