cpabsd Posted February 24, 2014 Report Share Posted February 24, 2014 I have a LLC operating as a partnership. This is a rental property. During 2013, Partner A sold his interest to partner B and C. Ownership did not change by greater than 50%. I do not prepare partner A's individual return. How do I treat the remaining capital in partner A's capital account? The transaction was handled at the personal level and did not run through the business. Do I just allocate the remaining capital account in the new partnership percentage? Thanks!!! Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 25, 2014 Report Share Posted February 25, 2014 Yes, that sounds right, the sale does not affect the books except that his capital now belongs to the partners who bought it, in whichever percentage they bought, whether 50/50 or otherwise. Quote Link to comment Share on other sites More sharing options...
cpabsd Posted February 25, 2014 Author Report Share Posted February 25, 2014 Thank you KC!!!! Quote Link to comment Share on other sites More sharing options...
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