Solved: 1 of our 2-member LLC taxed as partnership sold her 50% share to me. On personal taxes, how do I Describe partnership Disposal? And what is the tax implication to me?
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alingane
Level 2

1 of our 2-member LLC taxed as partnership sold her 50% share to me. On personal taxes, how do I Describe partnership Disposal? And what is the tax implication to me?

The options are:

No entry

Complete Disposition

Disposition was not via a sale

Sold and am receiving payments

1 Best answer

Accepted Solutions
Rick19744
Level 11

1 of our 2-member LLC taxed as partnership sold her 50% share to me. On personal taxes, how do I Describe partnership Disposal? And what is the tax implication to me?

There are a number of issues that may come into play, but you will not have a taxable event on your personal tax return.

Probably the best way to eliminate this from your return is to indicate that you had a complete disposition; which effectively you did as the partnership terminated.  TT will ask questions related to a sales price and cost basis.  Just make these two amounts equal so there is no gain or loss reported.

Having said that, as noted above, there could be a number of other implications that you need to understand.  I have attached a link to Revenue Procedure 99-6.  Your facts are situation 1 in this revenue procedure.

http://www.unclefed.com/Tax-Bulls/1999/rr99-06.pdf

*A reminder that posts in a forum such as this do not constitute tax advice.*

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1 Reply
Rick19744
Level 11

1 of our 2-member LLC taxed as partnership sold her 50% share to me. On personal taxes, how do I Describe partnership Disposal? And what is the tax implication to me?

There are a number of issues that may come into play, but you will not have a taxable event on your personal tax return.

Probably the best way to eliminate this from your return is to indicate that you had a complete disposition; which effectively you did as the partnership terminated.  TT will ask questions related to a sales price and cost basis.  Just make these two amounts equal so there is no gain or loss reported.

Having said that, as noted above, there could be a number of other implications that you need to understand.  I have attached a link to Revenue Procedure 99-6.  Your facts are situation 1 in this revenue procedure.

http://www.unclefed.com/Tax-Bulls/1999/rr99-06.pdf

*A reminder that posts in a forum such as this do not constitute tax advice.*

View solution in original post

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