My wife was in a two-person business partnership. She died in September. As her heir, I was given her share of the partnership's remaining cash on hand. Is it taxable?
The surviving partner told me this money had already been taxed in previous years and therefore would not be taxable now. Is this true?
My wife was in a two-person business partnership. She died in September. As her heir, I was given her share of the partnership's remaining cash on hand. Is it taxable?
I'm sorry for your loss.
No. According to the IRS Pub. 541 - Partnerships,
the cash you received from the partnership is considered a distribution and is
not taxable as long as the amount you received does not exceed your wife's
adjusted basis in the partnership (which it probably doesn't).
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My wife was in a two-person business partnership. She died in September. As her heir, I was given her share of the partnership's remaining cash on hand. Is it taxable?
I'm sorry for your loss.
No. According to the IRS Pub. 541 - Partnerships,
the cash you received from the partnership is considered a distribution and is
not taxable as long as the amount you received does not exceed your wife's
adjusted basis in the partnership (which it probably doesn't).
**Say "Thanks" by clicking the thumb icon in a post **Mark the post that answers your question by clicking on "Mark as Best Answer"
My wife was in a two-person business partnership. She died in September. As her heir, I was given her share of the partnership's remaining cash on hand. Is it taxable?
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